Financial market expert Muhammad Ali Yassin said that the results of most petrochemical companies such as Aramco, SABIC and Fertiglobe were lower in the first quarter of this year than in the same quarter last year.
In an interview with Al Arabiya, he added: “There was a significant increase in oil prices in the first quarter of last year due to fears at the time of the consequences of the Russian-Ukrainian war, and then there was a significant increase in prices that companies benefited from to achieve strong results. in the first quarter of last year.”
He mentioned that with the end of the fourth quarter of last year, prices are much lower compared to the first quarter of the year, and therefore now it is about a return to normal levels of demand and the appearance of this on the profits of companies. in the absence of fears of shortages of oil or gas.
He explained: “We are seeing a decline in oil prices, and if these levels continue, this will affect the results of the petrochemical companies in the second quarter of 2023, and then things related to the petrochemical sector will be negatively affected by the fall in prices, since these companies are associated with large state-owned companies, whether they are.” Aramco or SABIC or ADNOC, there is a good distribution obligation to the shareholders, and then the investor can expect a return on the share he gets.
Yassin said: “I believe that the return on investment in shares should be above 5% to attract investors to the Abu Dhabi market or elsewhere, because two or more pennies, an increase in dividends, will not change the picture.”
He pointed out that Yahsat did not have strong results last year and is currently in a recovery phase and as a company in the satellite sector it has a large capital investment process and the process of replacing these satellites will come and so he will incur expenses on time, and a two-fils increase in dividends is a positive thing, but it is not a percentage that encourages an investor to hold shares, especially if there are better investment opportunities in the market.
