WTI $57.83 +17c, Brent $64.16 +5c, Diff -$6.23 -12c, NG $2.42 +2c
Yesterday the oil price steadied, no more, no less as international events still battled each other for supremacy. Iran is now having a go at Britain on the ship front whilst still poking the US on the Uranium front. In addition the warning of a Tropical Storm brewing in the Gulf of Mexico had operators preparing for evacuations.
The excitement was after the close as the API announced a stock draw of 8.1m barrels, way higher than the 3.1m guessed at by the teenage scribblers. If such figures are confirmed by today’s EIA numbers then those of us who have been expecting a run of inventory draws will be proved correct, in the meantime Brent is back up at $65.
Wentworth has announced that it is to start paying a dividend which is very good news for shareholders. It plans to pay a dividend based on the company’s free cash flow generation but ‘balancing between investment in the business and operating within existing banking facilities’.
The dividend is planned to be paid 1/3:2/3 with the first payment announced at the interims due on 3/9/19, guidance appears to indicate a yield of 5-8% which would be a significant benefit to shareholders. With regular payments from Mnazi Bay giving the company increased confidence to pay from FCF, investors can look at WRL with increased confidence. What it means for the potential acquisition(s) the market has been waiting for is a moot point but I am meeting the company next week for a long overdue catch up.
The first CWC semi-final is still going on after rain in Manchester (No!) caused it to be carried over until today, can’t imagine that India will be shaking in their boots and will have slept well last night.
Celtic won 1-3 in Sarajevo last night so all being well the 2nd qualifying round beckons.
And whilst Konta was going out without a fight to an unseeded rival yesterday the Murena partnership flourished and will provide some fun for the adoring crowds.