The majors have reassured investors throughout the current period of lower oil prices that raising their dividends remains a top priority. But the squeeze on cash flow and profits is starting to stifle shareholder returns. ExxonMobil is the only major to raise its dividend so far this year, continuing an impressive record of unbroken yearon-year growth since 1983. The firm has more room to manoeuvre than its peers. It generated the highest free cash flow in the first quarter at $1.6bn and had the lowest dividend payout ratio at 59pc (see table). But ExxonMobil shareholders are not immune to the effects of lower oil prices. The firm’s unrivalled share buy-back programme is faltering, with repurchases falling to their lowest quarterly level in almost five years in January-March.
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