From Reuters.com:
A fresh slide in the price of crude wiped tens of billions of dollars off oil companies' market value on Friday and signaled an end to the sector's safe-haven status, as fears mounted over future profits and dividend payouts...
Overall, the sell-off since Thursday amounts to around $67 billion in lost market value, Reuters estimates.
That compares with a total dividend payout from the sector of $41.6 billion in the second quarter of 2014, according to data from Henderson Global Investors.
"Many investors in the oil-and-gas exploration industry were there for the promise of dividends," said Yannick Naud, portfolio manager at Sturgeon Capital.
"Today, with the oil price so low, many oil companies will have difficulty protecting their dividends..."
Others warned they had been fooled before by false dawns and this time the pessimism would take longer to end.
"The whole sector ... could be at risk of having to make a choice between keeping a high dividend payout ratio or (spending on) investing," said Antoine Porcheret, a derivatives strategist at BNP Paribas.
"These stocks can go lower."
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Link: http://www.reuters.com/article/2014/11/28/us-energy-oil-stocks-idUSKCN0JC1DI20141128
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