Oil companies are wooing skeptical investors with cash. Will it work?
Posted: Aug 3, 2021 8:31 AM
Updated: Aug 3, 2021 8:31 AM
Posted By: By Julia Horowitz, CNN Business
Wall Street isn't convinced that the world's biggest oil firms can successfully overhaul their businesses as the climate crisis accelerates.
The industry response? To dangle more cash.
What's happening: BP, which announced results that beat expectations on Tuesday, upped its dividend by 4% to 5.46 cents per share and said it would buy back $1.4 billion in shares over the next quarter. Its stock jumped more than 5% in London in early trading.
In the past week, competitors Chevron and Total also announced share buyback plans, while Shell boosted its dividend and said it would repurchase $2 billion in stock by the end of the year.
These sweeteners are made possible by the sharp recovery in commodity prices, Biraj Borkhataria, co-head of European energy research at RBC Capital Markets, told me.
See here: Brent crude futures, the …