Saudis going scorch earth, VET still confused and in denialI have been emphasizing for months that VET has had its head in the sand by not recognizing the difficult business environment it faces and its deteriorating balance sheet. Many on this board were angry at me for trying to pull their heads out of the sand and expressed that anger by mocking and ridiculing me. I guess the market has forced your heads out of the sand.
The Saudis now how decided to go scorch earth after Russia backed out of OPEC+. VET had the chance to do what it should have done years ago by significantly slashing its dividend. A 50% cut was not enough to keep the balance sheet from deteriorating further. Lenders will be highly reluctant to continue lending money to VET, something VET needs to survive.
So what will it do to investor confidence when VET needs to slash or even suspend the dividend in coming months? VET better hope for coronavirus 2.0 to blame it on. But really, how do you finally make the decision you have been avoiding for years to the detriment of the company and shareholders and then screw that up. Amazing!!!
JMHO. GLTA.
https://www.bloomberg.com/news/articles/2020-03-07/saudis-plan-big-oil-output-hike-beginning-all-out-price-war?srnd=premium