Latest update November 26th, 2024 1:00 AM

Guyana's largest selling daily and New York's most popular weekly

Latest News

Hess Corp – free cash flow, reducing debt

Aug 03, 2022 Editorial

Kaieteur News – John Hess, the CEO of Hess Corporation is one proud man, as he should be, since he has only good news to share with his listeners.  He has every right to be, because he has the facts and figures in his favour, and they are mouthwatering for all his people.  But as John Hess boasts and boosts the interest of his workers and investors, Guyanese again get confirmation of this upside-down oil world in which they live.  Upside down and ‘back-to-front’ is what Guyanese now experience and lament since this oil was discovered here.

Hess is laughing all the way to the bank with some mesmerising industry figures (“Oil company tells investors to bank on Guyana to weather any storm -As recession fears increase in the US…says cash flow to increase 25% yearly” -KN July 31).  This is a lovely American oil company story that is a continuing Guyanese tragedy.  Free cash flow (FCF) of 25% means, in the simplest terms, the cash in hand that is available for Hess’ executives and board of directors to engage in any number of actions that would benefit their shareholders.  First and foremost is the payment of dividends, which is dear to the hearts of those who invest money in a company.  These investors usually range from those called ‘mom and pop’ (hundreds of shares) to mutual funds (tens of thousands of shares) to the giant hedge funds (hundreds of thousands of shares).  Whether it is the small investor or the billionaire ones, receipt of dividends is the best confidence builder relative to the continued prospects of the company paying.  The small investors get to build their savings, and the hedge fund managers are in a position to make payouts to those who put money with them.  Dividends, therefore, is a win-win all around for American investors and others globally located; and dividends are but one of the pluses that indicate how well a company is doing.  Others are increase in share prices and the ability to pay down debt aggressively, all good things for a corporation.  This is where Hess Corp now stands; its current turnaround, and its exciting future prospects are all from the blood and back of Guyana.

This is the tragedy of Guyana.  While the foreigners are loudly and boldly bragging about their good fortunes, Guyanese are wailing at the dismal misfortunes that have been theirs since the inception of these massive offshore oil discoveries.  Investors in ExxonMobil and Hess Corp are drooling over how well their shares are doing, and much money they are getting and can expect.  In sharp, bitter contrast, Guyanese are being told by their leaders, one especially, about how more money from our oil wealth is not such a good thing because it could contribute to inflationary pressures.  The United States is unofficially in a recession, and the oil companies hitting it rich in Guyana are still doling out more dividends to their investors, but our leaders are saying ‘let us not press for more, because it would send up prices further.  We did say that it is an upside-down world in which Guyana exists.

But there is another eye-opening and embarrassing contrast.  This one is that the decision-makers at Hess Corp are prepping themselves to reduce the company debt by an incredible 75%, on the basis of plenty low cost and high profit pickings from Guyana, while Guyana’s leaders are hell bent on adding and adding to this nation’s debt by billions upon billions.  When all this is taken into consideration, and this is only while taking a limited look at the success and prospects of Hess alone, the terribly enraging comes.  This is not even one-sided and lopsided anymore, since the reality is that Guyanese have no side where their oil wealth is concerned.  It is as if all these billions of barrels belong to other people in another country, for all the good that this oil is doing for us.  Outsiders get to collect like lottery winners, while Guyanese are reduced to staring at the equivalent of ‘GoFundMe’ existence.  We must be the richest, hungriest most pathetic beggars in the world, thanks to our governments and our politicians who lead us.

Similar Articles

The Glenn Lall Show | November, 20th, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Rutherford gets big payday from Gujarat Titans at IPL 2025 Mega Auction; Shepherd, Powell snapped up by RCB and KKR, respectively

Rutherford gets big payday from Gujarat Titans at IPL 2025 Mega...

Nov 26, 2024

  SportsMax – Guyanese hard-hitting left hander Sherfane Rutherford will get the opportunity to shine on T20 franchise cricket’s biggest stage once again after being picked up by the...
Read More
Roach and Seales star as West Indies close in on Antigua Test victory

Roach and Seales star as West Indies close in on...

Nov 26, 2024

Delroy Tyrrell continues to excel at Oneonta State University

Delroy Tyrrell continues to excel at Oneonta...

Nov 26, 2024

Ramdass Royals Crowned Champions of the Inaugural Windies Masters Cricket Extravaganza

Ramdass Royals Crowned Champions of the Inaugural...

Nov 26, 2024

KFC Guyana distance self from delayed payment of GFF Elite League prizes

KFC Guyana distance self from delayed payment of...

Nov 26, 2024

Ravens and Royals ready for epic Elite 16 final showdown

Ravens and Royals ready for epic Elite 16 final...

Nov 26, 2024

Features/Columnists

Publisher’s Note

Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.

Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]