Guyana better off as Hess shareholders

Sep 18, 2022 Editorial

Kaieteur News – It is now clear that some are definitely reaping rich rewards from Guyana’s oil boom. Unfortunately, as those few foreign and local presences benefit from this boom, a different kind of boom is delivered to the heads of Guyanese poor, Guyanese working class, and Guyanese vulnerable. It is the ongoing tale of the two states of Guyana, those on top, and those nowhere in the running. The ranks of the latter group are filled with Guyana’s weak and wounded, the many limping and losing out, on their own wealth.

Hess Corporation has risen from the doghouse of Wall Street analysts and investors. It is growing with each sparkling update coming out of Guyana, and poised to be among the darlings of the watching investment community. They have money to spend, and shares to buy, and Hess Corporation is the pick to make. The returns for Hess Corporation are as handsome, the plans and actions of the Guyana-enriched company loaded with strategic visions, all devoted to making more money off the backs of Guyanese.

From Guyana’s rich oil profits, Hess Corp can proudly announce a whopping 50 percent increase in its dividend payout to shareholders happily counting their cash. The same shareholders have to be pleased that Hess is going to buyback US$650M of its outstanding shares, which represents more cash being raked in, regardless of what they do. Interested shareholders can take advantage of the buyback, and sell their shares to the company, which would usually be at a higher price than what it is trading for on the Stock Exchanges. The higher price is an incentive from the company to entice shareholders to part with their shares. Because of the buyback, Hess Corp would have a lesser amount of shareholders, which could mean a higher return for share dollar invested, serves to increase demand for the company’s share, and push up its price.

Those selling benefit, while those who decide to hold on to their shares, can dream of more profits, and a more consistent stream of juicy dividends, given the almost guaranteed returns from Guyana’s oil. The company has made a big splash about paying off US$500M loan money, which makes it an even more attractive proposition for yield and dividend hungry investors. From every angle, it is all upside and win-win for the shareholders of Hess, with not a cloud on the Guyana oil horizon.

When we at this publication take into consideration all the pluses from being a current shareholder of the Hess Corporation, the thought comes that Guyanese might be better off as shareholders and owners of Hess Corp, rather than owners of this enormous oil wealth. Foreigners and a few select Guyanese are getting incredibly rich from our oil, and boasting about it, while ordinary citizens of this country are left to groan over the riches and prosperity passing them by.

Those who are doing good, Guyanese with an inside track and people like John Hess and his shareholders, are overjoyed at how good they have things. Others are more careful and closemouthed, but they also are unable to mask fully their lush pickings. It is like they keep on hitting the jackpot in Las Vegas, except that this is happening in Guyana, and it is real for them. Contrastingly, this is painful and agonizing for Guyanese left out and losing out on their oil.

Among the hurting are Guyanese public servants. They know what it is to live with not having enough, while dreading the next pay cheque since it only goes so far, and there is little to show for it when spent. Meanwhile, the wait to the next one is a long, living hell. This can’t be in oil rich Guyana, not with all these big, bold numbers about its economy and projected performance, as resulting from out-of-this-world Gross Domestic Product (GDP) calculations. The sad reality is that it is Guyana, oil and all, but is of who gets and can brag, and who doesn’t and are left to lament their circumstances. It would be nice if Guyanese were on the receiving end of their riches, like Hess’s shareholders, for then that would be real citizenship, and prospering people, in a rich oil nation.

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