"ملف 10/1 XIII الامتياز النفطي بالبحرين" [و‎‎٤‎٧] (٦٤٠/١٠٨)

N
Anglo-Iranian total output w
embargo. This company is in
tion, in view of the majority
Government in its ordinary cap
An oil embargo could hardly
the co-operation of the United
has become clear that whether
tended to oil or not, the U.S. Gc
sure to bear on American com]
shipments to Italy. The unc<
ought to be taken into consid
industry prospects.
California Standard Oil
With a nominal capital of £5,
private company called Californ
was registered on 19 Nov., th
showing that the undertaking
Standard Oil Co. of California i
! the new company is believed to s
step in the progressive policy of 1
latter's oil development aetivit
| namely, on the Bahrein Islands j
on the mainland of Saudi Arabi:
good deal of attention. In the la
ducing wells hsive been eomplel
drilling has given encouraging si
refinery is to be erected on Bahre
of 10,000 barrels daily. This ins
ready next July, and the refiner
permit its capacity being readil
is considered to be favourably j
ducts in Singapore, Suez and So
Standard Oil Company of Calif(
of no par value in issue, which h
York this week at In 1
$1.40 per common share, and pa
The Royal Dnlch Dollar Bone
A decision is expected on 27 Is
before the Amsterdam Courts,
certain Royal Dutch group dollai
allowance for the difference betw
dollars. If this case goes • agai
apparently involve a slight reduct
ings available for shares of the
companies.
OIL BREV1
(Figures in parentheses are thi
Anglo-Egyptian. —Week to 15 Nov.
Anglo-Iranian.— Oct. output 587.00
British Controlled.— Week to 16 No
Emba Caspian Oil— Debit fwd. at 1
International Petroleum. —Semi-am
Canadian currency, plus special disbi
Mexican Eagle. —Week to 9 Nov., .
Peru Syndicate.— Loss 1931, €29. 1
Steaua Romana (British). —Div. ra
June.
Sternol.— Further 2 p.c. pref. ord.
arrears to 31 Dec., 1931.
Utd. British of Trinidad. —Week to
Crude oil received from outside prod
68.203 tons.
Venezuelan Oil Concessions. —Wee
(102,439). Well L.S. 291 at Lagun
116 tons a day.
Kern River.— Mr. George W. Ivt
(20 Nov.), said that from June t(
during which there was no other 1
retail connection in California tha
loss. During the latter part of tl
doubt have been offset by changes i
could be secured, and it is hoped
recovered in a comparatively short
conditions continue. In spite of a
prices operating from June last, tl
already earned a comfortable profit
A much better financial situation for
ably expected before many months i
OCTOBER MIMNG
Cold Results. —Ashley Gold, 1,305
silver (same); Kenya Gold, 196 oz.
(175).
Tin Outputs (tons).—Rantau, 24 (;
j( IK-
INVESTORS' CHR ONICLE AND MONEY MARKET REVIEW. 1153
OIL SHARES
Disappointment caused by the decision to
defer a resumption of the Shell's interim dividends
proved temporary, and for most of the week a
strong tendency has ruled in the oil share market in the
belief^ that the situation of the industry is improving,
and that in consequence interim dividends will ultimately
be forthcoming from the market leaders which have
suspended them in recent years. Little influence has been
exerted by a further increase in the daily average produc
tion of crude oil in the U.S.A. for the week to 10 Novem
ber, when it was 2,850,600 barrels, against 2,802,250 in
the preceding week. Ihere was some reduction in Cfili
fornia after the steady rise for many weeks, but this was
offset by a large increase in Oklahoma and smaller rises
in other important centres. Expectations of an increase
in the price of Mid-Continent crude oil have not yet been
fulfilled, but the price of Pennsylvania crude oil has been
raised by 15 cents a barrel—the second advance of this
amount in two weeks.
Owing to the interim dividend disappointment Shells
are slightly lower on the week at 82s., after fluctuations,
for they have been as low as TTs. (id., while before the
decision they attained 83s. 9d., the highest price since
1930. Royal Dutch have shown rather similar fluctua
tions, but recovered smartly towards the close to 2<) , l .
Anqlo-Iranians at 68s. have been rather dull. The
decision to drill for oil in Britain has naturally not been
a market factor, despite its importance from a national
standpoint; and there are doubts as to the manner in
which this company might be affected if sanctions against
Italy are extended to cover oil products. Apparently the
adverse possibilities have been somewhat exaggerated.
Trinidad Leaseholds continue a good feature with a
further rise to 83s. 9d. Optimistic estimates are in circu
lation regarding the effect on this company of a rise in
British petrol prices, and should this occur it seems quite
reasonable to expect a further rise in the shares. Shell
Unions have been strong and are discussed in a separate
note. Other good features have been provided by
Phoenix £1 shares at 9s. 3d., Apex Trinidads at 22s., and
Attacks, which have moved up again to 25s., despite
continued absence of further drilling news. Anglo-
Ecuadorians have been in favour at 25s. on the fulfilment
of dividend hopes.
Royal Dutch and Shell Dividends Delay
I n view of the optimism recently expressed regarding
the possibility of a resumption of interim dividends by
Shell Transport, there was disappointment when the
directors announced early this week that they had de
cided to defer a decision for the present. The recent
steady rise in Shells and other leading shares has been
due largely to interim dividend anticipations, and some
perplexity as to the exact significance of the announce
ment has been expressed. No statement as regards an
interim dividend is considered necessary by the Royal
Dutch Petroleum Company at the present juncture, and
it is believed in Amsterdam that further meetings to
consider the matter may be held in the middle of De
cember. In that centre it is suggested that a 4% pay
ment may be then forthcoming.
Shell has not paid an interim dividend since 1930,
when 10% interim was forthcoming in accord with the
then well-established practice. The final dividend for
that year, however, was cut to 7%%. For the following
three years single payments of 7^% were distributed each
time, but for 1934 one dividend of 125% was distributed.
These payments are tax free.
Two reasons are advanced as possible explanations for
deferring a decision. The favourite theory appears to
be that the directors are taking into consideration the
possibility that sanctions against Italy may be extended
to include oil products—a step which presumably would
have an adverse effect on the volume of deliveries of oil
by the group. The other reason for a cautious attitude
may be the fear of further untoward currency develop
ments. For instance, if Holland had to depart from the
gold standard a large non -recurring loss might be in
flicted upon the Royal Dutch-Shell group, if the experi
ence of 1981, when Britain departed from the gold
standard, is any criterion. Apart from this specific ad
verse possibility the general situation as regards foreign
currencies is certainly difficult for a group with such wide
spread international interests.
Shell Unions
O ne of the best features in the oil share market this
week has been Shell Union common shares of no par
value which, following on attention drawn to the position
in these notes and elsewhere, have advanced steadily
from $10 in the middle of October to |15 this week. In
view of the improvement in the oil position in the U.S.A.
it is now being suggested that preferred dividend arrears
of the company will be cleared off soon, thus paving the
way to a resumption of dividends on the common shares,
which have had nothing since 70 cents a share for 1930.
Perhaps the market is a little too optimistic in fore
shadowing early repayment of all preferred dividend
arrears, since these amount to $23.37 a share, while the
net earnings per preferred share in the first three-quarters
of 1935 were $9.70. Some reduction in the arrears may
perhaps be reasonably expected, although it is not quite
clear how this can be effected without first dealing with
the very large accumulated deficit to profit and loss
brought forward from previous years. No doubt the rise
in the common shares will continue in view of the optimis
tic tendency of Wall Street, but the preferred stock,
which carries 5^% cumulatiA e dividend, should also be
worth attention at 111.
Anglo-Ecuadorian Dividend
F or the year to 30 June Anglo-Ecuadorian Oilfields is
to pay 7|% dividend, a distribution which is up to the
best market expectations, and which appears to justify
in considerable measure the steady rise which has lately
occurred in these shares. This week there was a further
improvement in the quotation to 25s., and at this level
the yield, allowing for Is. 6d. gross dividend in the price,
is a trifle over 6%. For the year to 30 June, 1934, the
dividend was 5%, and this was earned with a small
margin, while in four previous years dividends of 3|%
each time had been paid. There was a blank in the year
to 30 June, 1931, but it appears as if prosperity is at
length attending the steady and cautious development
policy of this undertaking, which is under the same con
trol as Lobitos Oilfields. The 1933-34 profit included
£13,365 profit on sale of investments, and this item may
prove to have no counterpart in the last financial year,
for which the issue of a report is now imminent. Hence,
the increased dividend may betoken a substantially in
creased operating profit.
Sanctions and the Oil Industry
T he enforcement of sanctions against Italy as from
Monday last has drawn attention to the possibility that
the economic measures may later be extended to include
the cutting off of oil supplies. This would be such a
serious blow to the Italian campaign in Abyssinia that it
may not be embarked on without mature consideration,
but the League of Nations sub-committee is to consider
next week an extension of the embargo to oil, steel, etc.
The main oil exporting countries within the League of
Nations are Russia and Roumania, which have been large
suppliers of Italy in the past. Persia, otherwise the
Anglo-Iranian Oil Company, has also been prominent.
However, it seems that only a small proportion of the
/MA