Post by
SQCConsulting on Nov 08, 2017 1:26pm
Dividend
So indeed there is a reason, or are reasons, why the dividend has not been reinstated despite $50+ oil in a stable environment...the conditions under which they would reinstate a sustainable dividend. Historically though Husky has always maintained a good dividend compared to its peers. When we come to know the reason we will either; get paid out; have to suffer a drop in ff cash and temporary drop in the sp; or weigh in on a growth related purchase. I am not sure there is any real long term downside here. I just wish it was over so we can see the exact direction we are headed. If they do eventually reinstate a dividend hopefully they will return to their old ways although I doubt we will ever see the % dividends that were offered in the past.
Comment by
believer123 on Nov 08, 2017 1:45pm
Well, u never know. Technically, Lakashing is a majority shareholder so if a dividend is reinstated, he'll benefit the most (since he has the most shares) I think the board is just pretty extra careful and trying to see if the oil market is indeed balanced. This is the third time oil has crossed $50 bucks so they could be waiting to see if it falls back into the 40s.
Comment by
SQCConsulting on Nov 08, 2017 1:55pm
That is what I used to think but there really is no excuse now for not reinstating a dividend. They could have re-instated a small sustainable one long ago. They just do not want an SP in the mid 20s, preferring bundles of FF cash instead. There has to be reasons for this.