September 10, 2020 Read More →

Shareholders make money even as companies suffer massive losses

The Energy Mix:

Some of the world’s most colossal fossils posted epic financial losses between April and June this year, all in the interest of preserving their dividends to shareholders, the Institute for Energy Economics and Financial Analysis concluded in a research brief late last month.

“It was a dismal quarter capping a disappointing decade for the global oil supermajors,” said lead author and IEEFA financial analyst Kathy Hipple. 

“Overall, the five global oil and gas supermajors posted disappointing results after the worldwide coronavirus crisis crimped energy demand and sent prices plummeting,” IEEFA writes, with ExxonMobil standing out as a particularly poor performer.

But the quarterly crash appears not to have deterred the companies from protecting the dividends that keep investors onside. “The five supermajors—ExxonMobil, Royal Dutch Shell (Shell), BP, Chevron, and Total—collectively paid US$16.9 billion more to shareholders than they generated from their core business operations, plugging the gap with borrowing and asset sales,” IEEFA concludes. 

[Mitchell Beer]

More: Fossils Keep Paying Shareholders Despite Epic Financial Losses, Declining Business Prospects

Posted in: IEEFA In the News

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