Canadian Natural Resources increases its dividend again

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Canadian Natural Resources again increases its dividend

Canadian Natural Resources believes that the diversity of its assets, both oil and gas, allows it to overcome the volatility of hydrocarbon prices.

Calgarian oil and gas company Canadian Natural Resources has increased its dividend to shareholders by 6% after posting a sharp rise in profit in 2022.< /p>

It ended the year with $10.9 billion, an increase of 42.7% over 2021.

Canadian Natural Resources had already increased the dividend twice in 2022 and implemented a special dividend in August. Between these increases and share buyback programs, it estimates that it has paid out $10.5 billion to its shareholders.

In two years, the company has also reduced its debt by half.

Like all its competitors, Canadian Natural Resources benefited from a high price per barrel of oil and natural gas and it produced at a record level in 2022.< /p>

The company notes in its statement, however, that approximately $10.3 billion was returned to various levels of government in the form of taxes and royalties.

It also estimates that its $5 billion in infrastructure investment has created economic benefits for the country.

The oil companies' huge profits have drawn a round of criticism around the world. Some countries like the UK have implemented a special tax on these profits. Canada has not rushed down this path, but the Minister of the Environment, Steven Guilbeault, has invited the oil companies to release the funds to invest in the reduction of greenhouse gas emissions.

< p class="e-p">Canadian Natural Resources President and CEO Tim McKay said his company and the five other oil companies participating in the New Paths Alliance are advancing engineering work on their carbon capture and storage project. However, they are waiting for a clear structure of financial incentives to be put in place by the federal and Alberta governments before making the final investment decision.

This is a significant cost and with such a cost, we want to be certain of the rules and the financial structure, he stressed.

He notably cited as an example to compete with the Law on the reduction of inflation (Inflation Reduction Act) of the United States.

Despite these good profits over the year, the fourth quarter was however more complex for the oil company. The December cold led to the breakdown of mining equipment. Consequently, production decreased in December and January.

Profits for the period October to December 2022 decreased by 46% compared to the third quarter.

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