Anglo-Iranian Dividend In maintaining the ordinary dividend for 1950 at
the 30 per cent. rate which has been in force since 1946, Sir William Fraser and his co-directors on the board of the Anglo- Iranian Oil Company have fulfilled most City expectations: A handful of optimists had hoped that on the strength of what must be record profits the directors would take the bull by the horns and initiate a more generous distribution policy. The pessimists had feared that with the storm still raging round their heads the board might decide to postpone their dividend decision. In all the circumstances the 30 per cent. rate looks appropriate enough ; so is the decision to delay the presentation of the accounts and into service against the company. It seems beyond all doubt that last year's results were at record levels. In Persia itself oil produc- tion was sharply higher at close on 32 million tons against less that 27 million tons in 1949. Production in the Kuwait field, in which A.I.O.C. has a 50 per cent, interest, rose from just under 12,200,000 to over 17,100,000 tons and is now running at an annual rate of about 25 million tons. A.I.O.C.'s 23f per cent. interest in the Iraq Petroleum Company is also a profit- able investment, as are its extensive interests in oil marketing and distribution and in the tanker trade. I think it is a safe guess that but for the developments in Iran the ordinary dividend would have increased to at least 35 per cent., since earnings are probably running at an annual rate of over 150 per cent. Are the shares cheap or dear at £5 10s. ? In my opinion they are good value for those who do not mind fluctuations and who are prepared to take a long view.
Previous page
