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Summary
- Saudi Arabia based oil giant Aramco has decided to retain its dividend pledge of $75 billion for 2020.
- Its net profits for 2020 fell 44% as the pandemic crushed demand in the energy sector.
- The company’s strategy to optimise its oil and gas segment is on track, and it is seeing demand uptick in Asia.
Saudi Arabia based oil giant Aramco said that it would retain its $75 billion-dividend payout pledge for 2020 despite a slump in revenue and income due to the pandemic. The dividend payout, which is the largest by any listed company and would go to the state government, has been kept as is despite its net profits plunging 44 per cent after the pandemic forced many local businesses to shut down, thereby crushing demand in the energy sector. Its net profit for the year ended 31 December 2020 dropped to $49,003 million from $88,185 million a year ago.
Also read: Major events that shaped the markets in 2020
Its operating income fell to $102,229 million in 2020 from $179,966 million in 2019. Company CEO Amin H Nasser said that due to the pandemic, the company intensified its emphasis on operational and capital efficiencies and, as a result, was able to declare a dividend of $75 billion for 2020.
Naseer said that the company’s strategy to optimise its oil and gas segment is on track, and with the improvement of global business sentiments, the company is seeing demand uptick in Asia.
Also read: 10 FTSE 250 Stocks with Over 6% Of Dividend Yield
(Data Source: LSE) Copyright © 2021 Kalkine Media Pty Ltd.
In this article we will put our lens through two FTSE 250 oil and gas stocks that have a dividend yield of 10 per cent in 2020.
Diversified Gas & Oil Plc (LON:DGOC)
This American oil and gas manufacturing company, in its results for the year ended 31 December 2020 announced that its adjusted total revenue for the year fell 12 per cent to $408,693 from $462,256. It announced an operating loss of $77,568, down 143 per cent from $180,507. Dividends to shareholders in 2020 increased to $98,527 from $82,151 in 2019.
Also read: 3 Oil & Gas Stocks with Stable Dividends
CEO Rusty Hutson Jr said that the company was confident of being able to keep up the dividend payouts as the US outlook and positive fundamentals would create a growth-supportive environment.
The company has a dividend yield of 10.05 per cent and its shares were trading at GBX 111.60, up by 0.18 per cent on 22 March at 08:12 GMT+1. The FTSE 250 index was down 0.41 per cent at 21,332.61.
Petrofac Limited (LON:PFC)
The British company, which provides oilfield services to the global oil and gas industry, has a dividend yield of 10.70 per cent. For the year ended 31 December 2020, the company said that business was in line with expectations. The company said that its new order intake worth $1.4 billion would give it a wider picture of industry dynamics. It added that immediate actions taken to conserve cash and protect trade margins helped the company through difficult market conditions.
The company also said that it was taking steps to increase the cost saving target to $250 million in 2021. The company’s liquidity as on 30 November 2020 was $1.0 billion. It would be announcing its full-year results for the year ended 31 December 2020 in April.
PFC shares were trading at GBX 96.62, up by 1.22 per cent on 22 March at 08:16 GMT+1. The FTSE 250 was down 0.26 per cent 21,365.01.
