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Alto1
Yes the BOD could have made the decision already....and you have to believe that as they had a relatively low debt level that the creditors have approved it, and the main shareholders are on board with it too ...
I mean, I think the BOD would have sought their opinion before proposing it on the AGM ..you dont want to be embarassed at the AGM, after all ..especially when all the BOD are up for re-election.
can someone help me out here why are some assuming that we have to wait for the agm to cancel dividend when the board can just take special measures or am i missing something thanks in advance.
I'd agree with your last paragraph. Its harsh but true. The rest is your interpretation. The leaders of each country will have their own interpretation. What we need is cooperation and there's little of that. Just opposing Trump because of his attitude doesn't cut it in the World's requirements.
I am not sure the war is between Russia and Saudi Arabia, to be honest.
The issue is market share and Russia is annoyed that the US isnt reducing their market share along with both Russia and Saudi Arabia who have done so as part of the OPEC+ agreement.
In view of that Russia decided not to reduce supply further and just watch the US take further advantage and said NO to further reductions...and as a result Saudi Arabia decided they were no longer going to be the ones having to continually give up market share...and said..look..enough is enough...it is about time the US took some responsibility in reducing supply..as as they wont ...we will blow them out of the water
Russia has been getting on pretty well with China and forging oil agreements with them as a consequence of Trump falling out with China.
The issue isnt so much about Russia and Saudi Arabia but....the US Americans and basically...Trump
Trump has been completely blazon in his foreign policy believing that his strong oil exports would put him in strong position.
I think he is going to find out the hard way that he was wrong and somewhat naive, and the strengthening US Dollar will hurt his export goal, even more.
Germany's decision was theirs to make and not to be interefered with by Trump and his over zealous power authority.
Merkel's argument was that the agreement with Russia would bring the two sides together more and result in less conflict.
Trump has been over stepping his position of power. He thinks he can do what he wants and say what he wants.
He has the diplomacy skills and communication skills of an uneducated, reckless school boy
I would think Trump is pretty annoyed at the oil producing war between Russia and Saudi Arabia. That's the reason for the oil price fall now. Don't see the logic about Putin getting annoyed with Trump. The gas to Germany was Germany's decision. If anyone he's annoyed with Merkel to give Russia the monopoly of energy for Germany after they had decommissioned all their nuclear power stations.
Well, given that the dividend is on the AGM agenda to be voted on, it does appear likely that it will be accepted
If you are going to cancel/postpone the dividend you do so before the AGM agenda is finalised.
The ex-div day SP drop will also have to be taken into account, but where the SP is at that point remains to be seen, of course
Trump had a phone call with Putin about the energy price situation ...I would bet that Putin was really p*ssed off and annoyed with Trump interfering with Russia's programme to supply gas to Germany and told him so
investors will always be divided but the end result should always be the same survival of the company and more cash to hand will help. we have low oil prices and the last thing company's are thinking of right now are building on there infrastructure this could last for a while. of course you could take on more debt for these hard times but that would dilute the share price anyway and would have no return to ROCE as it would just be used to service outgoings. for me the dividend withdrawal has to be the first port of call to stage a recovery
Poker, I suggest you refer your comments to Manro and gelston. They're the ones who appear to be annoyed at your justification of removing the dividend.
As for me if the dividend was removed and the SP rose on the back of that then I would sell some of my holding. Wetherspoon's SP rose 25%. If that happened here then, even at the current SP, that would be a couple of years of dividend worth. However some who hadn't bought in at the current very low price may not agree.
" PFC had a reduction in the dividend a while ago and that will have annoyed holders for the dividend. To do so again will incense many. The company needs to be careful. "
Stockdale,
Take a look at the revenues over the last few years and see how much that has fallen and that might give a clue as to why the dividend had to fall into line....
Deciding to buy a share at a certain price doesnt mean that the company has to adapt itself to the shareholder, who might be annoyed or incensed by the result and consequences of events in the big wide world.
The shareholder has to adapt to the changing trends in the sector..... you merely bought the shares off someone who was selling them and it is the shareholder that needs to be careful in view of the price he/she is willing to pay for the shares, more so than any company worrying about whether they might "incense" the shareholders because of having to make difficult decisions during unprecedented circumstances
I too hold for the dividend. As I am retired it tops up my pension. There do seem to be two opposing views on this. Those who hold PFC for the dividend and those concerned at the reducing SP. Holding just for the steady income the dividend brings means those doing so aren't too bothered about the SP.
PFC had a reduction in the dividend a while ago and that will have annoyed holders for the dividend. To do so again will incense many. The company needs to be careful.
Also what about my point where the share goes ex dividend on 23 April and yet we're apparently not voting on a dividend until 15 May?
Totally agree with you, gelston.
I think that the Covid-19 inspires fear and causes some cowardly people even more harm than if they had infected and carried it in a mild form.
I like many others hold this share for the dividend. What on earth are we talking about here? I would have been better off with the 2.75% offered by HSBC.
Other companies cancelling their dividend has boosted their SP. Wetherspoons's SP increased by 25%.
I see the AGM date is scheduled as 15 May. However the share goes ex dividend on 23 April. So it would appear any vote to cancel or continue the dividend won't happen until 3 weeks after the share had already gone ex dividend.
jaffjoon this is the email for the chairmen of the board agmquestions@petrofac.com. it will be a closed meeting anyway due to covid. to be honest i will be amazed if they don't cancel divi or at least reduce it i am sure they will do the right thing.
Thanks Alto; As you say you have already covered this issue. I should have read the previous posts first...
So in order to assist in cancelling the dividend how can we do it all together here ? how do we get the proxy voting forms /
Is anyone else here in agreement that we should do this ? after all we are shareholders.
jaffjoon as i posted yesterday i to want dividend to be cancelled but some want it to stay but it's a bad idea to pay a 15.50% yield divi in this climate if interested read posts below me and stockdale had a conversation on this matter.
I`m going to put in my two pence worth on the subject of Dividend as follows:
I feel the sooner PFC cancel the dividend the better instead of leaving it to a vote at the AGM. The reason is that it will be seen by the market (us) as the responsible thing to do and I believe once done, the share price will actually rise (as did Wier & others). Surely in these unpresidented times when "cash is king" and financial reserves are of the utmost importance, handing out dividends could be classified as a reckless move when the future of almost every company globally is questioned and unstable . I am viewing this with the long term future of the company in mind and am already heavily invested in PFC.
Perhaps if shareholder here agree, we could on mass agree to vote against the dividend at the AGM if so how do we do this and where do we get our proxy forms ?
Would appreciate your responses.
Hmmmm? Wonder whats about to be released? SP down 4% is as many minutes!!
Well the AGM agenda is out and the dividend proposal is on the agenda, so it clearly is going to be voted on....and..looks like it will be paid.Once it has been approved it has legally to be paid.
Agenda : Declaration of dividend
2. To declare a final dividend of US$0.253 per share recommended by the Directors of the Company (the Directors) in respect of the year ended 31 December 2019.
which may answer why the Share price ticked up this morning after falling first thing...
Notice of 2020 AGM: https://www.petrofac.com/media/5089/11_petrofac_ar19_nom.pdf
Weir group cancelled their final dividend on Thursday update
I think Petrofac needs to present an update RNS giving some detail to the current situaution with its projects and tenders, and give its working proposals to support the balance sheet
it's not really about supporting it's more about surviving in this mess there is a good chance with oil staying low we do not get anymore contracts for quite some time liquidity will be needed to cover this period more cash= more time. as for share holders confidence that's were we differ i will have more if they cancel dividend and some good quality analysts agree with me look if the dividend is good for you then i hope you get it. different views are healthy on a chat board so shall we leave it there and see what happens thanks stockdale.
So we have long termers holding at 400p and we have a few traders who've bought in recently and are traders and so will sell at a profit shortly. Which do you think the company will support?
My understanding is the company can easily cover the dividend. So cancelling it will give them money they don't need and will lose them shareholder confidence. Hmm .....
stockdale, i don't liquidate much i did at the start of the drop and bought back in but i did not catch bottom not in my dreams did i think things would get this low. i like most concentrated to much on covid 19 which would be short lived but it's not about that anymore it's the frozen in time economy that will drag for a year or two i am lucky i have a low average because i got out early but i still don't want pfc to pay dividend. it is different perspective for all if you bought at 150p and have no intention to hold long term then the divi is great for you and no doubt you wont care about company after that. but if you are a LTH then you would want the company to preserve cash right now and then maybe pay a special dividend later. my view is if they pay this divi the share will selloff after? if they cancel it there is a chance sp will go up in response to this? stockdale ask yourself this would you like your company to have a bigger cash pot by not paying divi or a smaller one due to paying a high yield dividend in this current climate. i no views are going to be different but to (me) the divi has to go i am sorry if this offends but i am thinking of the future not the now company's need to hold cash not debt.
Interesting viewpoint alto. Most have paid in excess of 400p for PFC. They would not be getting 15%. You seem to be very trigger happy in liquidating stocks.
nice to see insiders buying but they need to cancel the dividend it would be foolish not to. you just cant pay a 15.49% at current sp in this climate. in fact if they do pay divi i will liquidate positions as i would of lost faith in management. but i am 99% sure it won't come to that they will do the right thing.