In times of drought of dividends for the summer season in the Spanish stock market, it is time to put the radar beyond the Pyrenees for the return to school. Specifically, it will be the last week of September when the oil Eni and Total give the green light output to payments of large European sector. Industry flagships have taken advantage of the first half results presentation to communicate new news to the market about their shareholder remuneration policies. Check out the upcoming dividends here .
In general terms, the main oil companies on both sides of the Atlantic confirmed in the second quarter the recovery of profits that began to be sensed in the first three months of the year. In this way, BP, Royal Dutch Shell, Total and Eni confirmed that they will reinvest their profits in the repurchase of shares and the payment of dividends.
The decision of the industry to reward its investors before investing more to increase future production, reinforces the prospect of rising oil prices ?? despite the fact that the barrel of Brent, a reference in Europe, has already accumulated three weeks to the goes down and trades at five-month lows due to fear of a slowdown? and reflects political pressures to accelerate the energy transition.
In the case of the Italian firm, which in 2020 was forced to cut its dividend in 2020 due to the huge impact of the pandemic on oil prices, it agreed on July 29 to distribute 50% of the planned dividend as an interim dividend through the use of available reserves, for an amount of 0.43 euros per share.
In this way, it will be on September 22 when the company distributes this payment, which at current prices offers a profitability of around 4%. The last day to include the portfolio value is September 19, since on September 20 they will be listed without the right to receive that remuneration.
Eni scored nearly 17% for the year as a whole and ranks among the most bullish of the Stoxx600 energy companies.
Repurchase of shares
The next date investors have to mark on their calendar will be October 1. It will be then when Total, which was one of the few headlines in the sector that kept its remuneration policy intact last year, delivers the second of its payments out of 2020. Those 0.66 euros rent 1.73% at current prices with its titles scoring 2.7% in 2021. From the annual highs that it reached in March, its share has fallen by 11%.
The French, which is one of the values of the Tressis Cartera Eco30 fund , announced after communicating its accounts for the first quarter that it will allocate 40% of the additional flow of income generated above 60 dollars per barrel of oil to the repurchase of shares.
Patrick Pouyanne, CEO of the company, stressed that it would mean repurchasing shares for 800 million in 2021. “And if the average price rises to 68 dollars, for example, it could rise to one billion,” added the executive.