81756
Big Oil Vies for Investors
Big Oil Vies for Investors

Big Oil Vies for Investors

Big Oil Vies for Investors

With years of austerity in their rear-view mirrors, the world’s biggest oil companies are locked in a contest to lure investors with promises of growth and greater rewards.
Royal Dutch Shell and Total are emerging as frontrunners after a three-year slump thanks to strong growth projections but Exxon Mobil, the biggest publicly traded oil company, has largely disappointed with a weaker outlook, Reuters reported. 
Major oil companies slashed spending and cut costs after oil prices collapsed in 2014 and can now generate as much cash with crude at $50-55 a barrel as they did when the price was around $100 earlier in the decade. 
Cash flow at oil companies in 2017 rose to its highest since before the slump, helped by the drastic cost-cutting plans and a recovery in oil prices, and executives are once again turning their attention to growth. With crude expected to hold above $60 a barrel into the end of the decade, major oil companies are confident they can boost already attractive payouts to shareholders. 
Total sent the strongest signal, announcing plans to increase dividends by 10%, buy back $5 billion of shares by 2020 and abolish its so-called scrip policy introduced in the lean years of offering shares instead of cash dividends. 
Analysts at Bernstein hailed the French company, which reported a 28% rise in fourth-quarter profit on Thursday, as “the new benchmark in shareholder returns” and upgraded their share recommendation to “outperform”. 
“Clearly the US companies disappointed more whereas Total cheered everyone up together with Shell, even if it had a small miss,” said Alasdair McKinnon, portfolio manager at The Scottish Investment Trust. Norway’s Statoil and US company Chevron Corp. have also raised their dividends over the past week, while BP was ahead of the pack by resuming share buybacks in the fourth quarter of 2017.  Shell, whose profits and cash flow beat Exxon’s last year, is now set to buy $25 billion of shares by the end of the decade after abolishing its scrip policy in November. 
Analysts say Exxon remains an outlier after a disappointing drop in cash flow and production in the fourth quarter raised concerns among investors about its strategy. 

Short URL : https://goo.gl/MCnuJz
  1. https://goo.gl/z7Ek5T
  • https://goo.gl/ZhJm4C
  • https://goo.gl/ypTBRQ
  • https://goo.gl/7vZfEC
  • https://goo.gl/QPhZAg

You can also read ...

Oil Industry Bosses Will Discuss OPEC Policy
Key oil ministers and company executives will gather in Russia...
Russia Eying Crimea Energy Resources
Russia should explore the Crimean continental shelf for...
China, India Lead Solar Expansion
India and China are driving a rapid global expansion in large-...
Brent and WTI crudes stood at $79.39 and $72.47 per barrel on Tuesday.
Oil prices rose on Tuesday on concerns that Venezuela’s crude...
NISOC Efforts to Develop 4 Major Oilfields on Track
The National Iranian South Oil Company's efforts to boost...
Smart Electricity Meter Project Awaits Funds
The venture to complete the replacement of 450,000 old...
NIOPDC to Export  8,000 Tons of Diesel
Close to 10,000 tons of diesel were exported to Iraq and...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus