Five major oil companies to reward shareholders with record payouts

BP, Shell, Chevron, ExxonMobil and TotalEnergies will distribute more than 100 billion in 2023, amid growing public outrage over the profits of fossil fuel companies. This is reported by UNN with reference to The Guardian.

Details

According to the Institute for Energy Economics and Financial Analysis (IEEFA), the five largest companies - BP, Shell, Chevron, ExxonMobil and TotalEnergies - paid dividends to shareholders in 2022 calendar year paid dividends to shareholders and bought back shares worth 104 billion dollars.

BP used the results of the second quarter of last year to inform shareholders that in 2023 dividends will increase by 10%, which is significantly higher than the original forecast. 

The high payments came as Russia's invasion of Ukraine upended global energy markets, sparking a record markets, triggering a rise in the international price of Brent crude oil and record gas prices across Europe.

Payments and profits of and profits of major oil and gas companies are also being discussed amid news of the end of a year that is likely to be called the hottest on record. will be called the hottest year on record, an achievement that is linked to the climate emergency on the planet.

Global energy crisis and excessive profits 

In recent years protests against oil company AGMs and conferences have become increasingly more radical, as activists demand more ambitious measures to address climate change.

Also, the discussion of this topic also touches on the formation of probable profits for the continuation of Russia's war in Ukraine, while millions of households are plunged into a cost of living crisis due to high energy costs.

Alice Harrison activist at Global Witness, has the following point of view: "The global energy crisis has become a giant money grab for fossil fuel companies. And instead of investing their record profits in clean energy, these companies are doubling down on oil, gas and shareholder payouts," says an activist with an international NGO working to break the links between natural resource exploitation, poverty, corruption and human rights abuses around the world.

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Once again, millions of families will not be able to afford to heat their homes this winter, and countries around the world will continue to suffer extreme weather events of climate collapse. This is the fossil fuel economy, and it is rigged in favor of the rich

Dieter Helm professor of economic policy at Oxford University and former advisor to the to the government, believes that the payments show that the industry remains confident in its future profitability. According to the expert, the climate agenda is unlikely to play a role in the recent record shareholder payouts, he said. he said.

To do this, you need to believe that the energy transition is happening and that demand for fossil fuels will fall. These companies are investing huge amounts of money in new projects, and they're paying out big dividends because they're confident that they're going to make big profits. And when we look at the state of our current climate progress, who's to say they're wrong?

Addendum

According to analysts at S&P Global Market Intelligence (SPMI), the record payouts to investors in the oil industry were largely supported by a sharp increase in share buybacks, which plays a role in ensuring future payouts by oil companies.

In the US, Chevron is leading a $75 billion share buyback program, followed by ExxonMobil with $50 billion. In Europe, Eni and Equinor have significantly increased their share buybacks. (...) We forecast that Shell and BP will allocate 15-18% of cash flows to dividends and about 25% to share buybacks in 2024."

Recall

UNN reported that at the last climate conference the discussioncontinued, which was previously caused by a letter from the OPEC oil cartel to the member states of this organization, which which called for blocking ambitious resolutions on the phase-out of fossil fuels - coal, oil and gas.

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