- Total Confident Earnings Can Withstand Volatile in Oil Prices
French oil major Total said Thursday it planned to increase its dividend to shareholders as it expressed confidence earnings could withstand the current volatility in oil prices.
Total said in a statement that its headline net profit soared 22 percent to $6.2 billion (5.8 billion euros) in 2016.
However, the adjusted net profit, which is tracked by analysts because it excludes one-off items, fell by 21 percent to $8.3 billion.
And revenues were down nine percent at $149.7 billion.
Oil prices “were highly volatile in 2016, fluctuating between $27 per barrel and $58 per barrel,” said chief executive Patrick Pouyanne.
The average price of oil declined by 17 percent and the average price of gas by 25 percent, he noted.
“In this difficult environment, the group demonstrated its resilience by generating adjusted net income of $8.3 billion,” Pouyanne said.
“In this context, the board of directors proposes to increase the dividend, despite the volatility of hydrocarbon prices, to 2.45 euros per share. This demonstrates the board’s confidence in the strength of the group’s results and balance sheet as well as its prospects for cash flow growth.”
In the fourth quarter of 2016 alone, Total said its revenues grew by 12 percent to $42.3 billion and adjusted net profit was up 16 percent at $2.4 billion.
The unadjusted, or headline, earnings figure swung back to a profit from a year-earlier loss, driven by a rebound in oil prices to $50-$55 following a deal reached by oil producers in December to slash output by almost two million barrels per day.
The oil market still had not stabilised, said CEO Pouyanne, pointing out that the price of oil was still only half of what it had been in mid-2014. And he predicted “some volatility” in 2017.
Nevertheless, the CEO insisted he was “optimistic. We’ve shown that we’re capable of adapting.”
Among the other oil majors, only US-based Chevron has increased its payout to shareholders, while Shell, BP and Exxonmobil have all decided to leave their dividends unchanged.
After investing $18.3 billion in 2016, Total plans to lower investments to $16-17 billion this year and cut costs by $3.5 billion, Pouyanne continued.
At around 1000 GMT, Total shares were outperforming the overall market on the Paris stock exchange, adding 0.7 percent while the blue-chip CAC 40 index was up 0.4 percent.
Analysts at RBC Capital Markets welcomed the group’s “solid results” while a Paris-based analyst predicted that Total “will outperform its rivals in the short to medium term.”
Global Oil Drops as Coronavirus Infections Rises in India and Other Nations
Oil prices declined on Monday during the Asian trading session amid rising concerns that the surge in coronavirus in India and other nations could force regulators to enforce stronger measures at curbing its spread and eventually affect economic activity and drag on demand for commodities like crude oil.
Brent crude oil, against which Nigerian oil is priced, declined by 22 cents or 0.33 percent to $66.55 per barrel at 8:19 am Nigerian time on Monday, following a 6 percent surge last week.
The US West Texas Intermediate (WTI) declined by 18 cents or 0.29 percent to $62.95 per barrel, after it gained 6.4 percent last week.
The decline was after India reported 261,500 new coronavirus infections on Sunday, taking the country’s total cases to almost 14.8 million, second to only the United States that has reported over 31 million coronavirus infections.
“With … a resurgence of virus cases in India and Japan, topside ambitions continue to run into walls of profit-taking,” said Stephen Innes, chief market strategist at Axi.
Businesses in Japan believed the world’s third-largest economy will experience a fourth round of coronavirus infections, with many bracing for an additional slow down in economic activity.
While Japan has had fewer COVID-19 cases when compared with other major economies, concerns about a new wave of infections are fast rising, according to responses in Reuters poll.
On Tuesday, April 20, 2020, Hong Kong will suspend all from India, Pakistan and the Philippines because of imported coronavirus infections, authorities stated in a statement released on Sunday.
India’s COVID-19 death rose by a record 1,501 to hit 177,150.
Global Markets Near Record Peaks and Will Get Stronger: deVere CEO
As the FTSE 100 hits 7,000 points for the first time since the Covid pandemic, global stock markets are poised to “get even stronger”, says the CEO of one of the world’s largest independent financial advisory and fintech organisations.
The observation from Nigel Green, the chief executive and founder of deVere Group, comes as London’s index jumped over the important threshold in early trading in London, gaining over 0.5% to 7024 points.
Mr Green notes: “London’s blue-chip index is up 40% since the worst lows of the pandemic.
“This landmark moment represents the wider optimistic sentiment gripping global markets which are near record peaks.
“We can expect global stock markets to get even stronger as investors look to seize the opportunities from economies reopening.
“They are looking towards economies rebounding in a post-pandemic era due to the monetary and fiscal stimulus, pent-up cash and demand, and strong corporate earnings.
“The current ultra-low interest rate environment and the under-performance of bonds will also act as a catalyst for stock markets.”
However, the CEO’s bullish comments also come with a warning.
“I would urge investors to proceed with caution as there are some headwinds on the horizon, including relations between the U.S. and China, the world’s two largest economies, which could be coming to a tipping point in coming weeks.
“As such, in order to capitalise on the opportunities and mitigate risks, investors must ensure proper portfolio diversification.”
Mr Green concludes: “A variety of factors are going to drive global stock markets. Investors will not want to miss out and should work with a good fund manager to judiciously top-up their portfolios.”
Refinitiv Expands Economic Data Coverage Across Africa
Building on its commitment to drive positive change through its data and insights, Refinitiv today announced the expansion of its economic data coverage of Africa. The new data set allows investment managers, central bankers, economists, and research teams to use Refinitiv Datasteam analytical data for detailed exploration of economic relationships and investment opportunities among data series covering the African continent.
Securing reliable, detailed, timely, locally sourced content has not been easy for economists who have in the past had to use international sources which often can take many months to update and opportunities to monitor the market can be missed. Because Africa is a diverse continent, economists and strategists need more timely access to country-specific data via national sources to create tailored business, policy, trading and investment strategies to meet specific goals.
Africa continues to develop critical infrastructure, telecommunications, digital technology and access to financial services for its 1.3bn people. The World Bank estimates that over 50% of African inhabitants will be under 25 by 2050. This presents substantial opportunities for investors who can spot important trends and make informed decisions based on robust and timely economic data.
Stuart Brown, Group Head of Enterprise Data Solutions, Refinitiv, said: “Africa’s growing, dynamic and fast evolving economies makes it a focal point for financial markets today and in the coming decades. As part of LSEG’s commitment to empowering the global markets with accurate and timely data, we are excited about making these unique datasets available via the Refinitiv Data Platform. Our economic data coverage of Africa will provide our customers with deeper and broader inputs for macroeconomic analyses and enable more effective investment strategies and economic research.”
Refinitiv Africa economic data coverage:
- Africa economics content comprises around 500,000 nationally sourced time series data covering 54 African nations
- Content is sourced from national statistical offices, central banks and other key national institutions
- The full breadth of economics categories in Datastream including national accounts, money and finance, prices, surveys, labor market, consumer, industry, government and external sectors
- International sources including OECD, World Bank, IMF, African Development Bank, Oxford Economics & more provide comparable data & forecasts across the continent
Refinitiv® Datastream® has global macroeconomics coverage to analyze virtually any macro environment, and better understand economic cycles to uncover trends and forecast market conditions. With over 14.2 million economic times series map trends, customers can validate ideas and identify opportunities using Refinitiv Datastream. Access its powerful charting tools, 9,000 pre-built chart templates and chart studies for commonly used valuation, performance, and technical and fundamental analysis.
Refinitiv continually grows available data – the China expansion in 2019 covered a unique combination of economic and financial indicators. Refinitiv plans to expand Southeast Asia covering Thailand, Vietnam, Philippines and Malaysia with delivery expected in 2021. This ensures that Refinitiv will have much needed emerging market economic content.
Finance3 weeks ago
List of Microfinance Banks’ USSD Codes In Nigeria
Government4 weeks ago
US Intelligence Says ISIS and Al-Qaeda Are Planning to Attack Southern Nigeria
Education2 weeks ago
COVID-19: 2021 WASSCE May Not Hold in May/June – WAEC
Brands2 weeks ago
LG To Close Mobile Phone Business Worldwide
Education2 weeks ago
JAMB Puts 2021 UTME/DE Registration on Hold
Technology3 weeks ago
FG Extends NIN-SIM Linkage by Four Weeks
Telecommunications4 weeks ago
Nokia, Safaricom Partner to Launch East Africa’s First Commercial 5G Services in Kenya
Economy3 weeks ago
Business Activities Fall as PMI Drops to 57.3– CBN