He said that dividends should not be less than 5%.
Financial market expert Muhammad Ali Yassin said that the results of most petrochemical companies such as Aramco, SABIC and Fertiglobe in the first quarter of this year were lower than the same quarter of last year.
He added in an interview with Al-Arabiya that the first quarter of last year witnessed a significant rise in oil prices due to fears at the time of the repercussions of the Russian-Ukrainian war, and then there was a significant rise in prices that companies benefited from to achieve strong results in the first quarter of last year.
He stated that with the end of the fourth quarter of last year, prices are much lower when compared to the first quarter of the year, and therefore we are currently talking about returning to normal levels of demand, and this will appear on companies’ profits in the absence of fears of a shortage of oil or gas.
He explained, “We see a decline in oil prices, and if these levels remain, it will affect the results of petrochemical companies in the second quarter of 2023, as well, and then things related to the petrochemical sector will have a negative impact from the drop in prices. These companies are linked to major government companies, whether it is Aramco.” Or “SABIC” or “ADNOC”, there is a commitment to good distributions to shareholders, and then the investor can expect the return on the share that he will receive.
Yassin said, “I believe that the return on investment in stocks should be above 5% to attract investors in the Abu Dhabi market or elsewhere, because a two-file increase in dividends will not change the picture.”
He pointed out that the “Yahsat” company had not strong results last year, and currently there is a recovery phase, and as a company in the satellite sector, it has a large capital spending process, and a replacement process for these satellites will come, and therefore it will bear costs in a timely manner, and an increase in distributions by two pennies. Positive, but it is not the percentage that motivates the investor to keep the stock, especially if there are better investment opportunities in the market.
2023-05-09 14:36:00
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