Five largest oil companies expect record dividends in 2023 - environmental activists outraged

Five largest oil companies expect record dividends in 2023 - environmental activists outraged

According to a report by www.finanzen.net, the five largest listed oil companies are expected to make record dividends to their investors in 2023, despite an 11 percent drop in WTI oil prices. This is causing outrage among environmental activists as major oil companies' profits are falling but shareholder payouts are rising.

Despite lower profits due to lower oil prices, the five super majors could increase their payouts even further for 2023. Analysts believe these record payouts are intended to distract investors from increasing protests at oil company shareholders' meetings and conferences.

Shell, for example, has announced that it intends to reward its shareholders with at least $23 billion, which is more than six times the amount the company has budgeted for renewable energy. These generous payouts indicate that the industry remains confident in its future profitability, despite increasing public protests and accusations of profiting from the Ukraine war.

According to S&P Global Market Intelligence (SPMI), the record payouts come largely through share buybacks, allowing oil companies to share a profit increase with their shareholders without making the long-term commitment of changing dividend policies.

However, these record payouts send a clear message to investors that, despite the challenges and protests, the oil industry sees a secure future for its payouts. The rising dividends show that the industry continues to focus on high returns and profitability, despite growing public and political criticism.

However, the recent decline in WTI oil prices may mean that many oil companies will not be able to maintain this trend for a longer period of time, as the profitability of oil projects depends directly on oil prices. Pressure from environmentalists, policymakers and the general public on the oil industry could therefore increase in the coming years and influence oil companies' dividend policies.

It remains to be seen how the oil companies will position themselves in the coming years in the face of ongoing pressure and environmental challenges. The development of oil companies' profitability and dividend policies will likely continue to be a topic that investors and observers will follow closely.