Big Oil faces ‘survival mode’ payout strategies as prices dive

Big Oil faces ‘survival mode’ payout strategies as prices dive

To try to keep investors on side, the boards of major oil companies boosted dividends and share buyback programmes.. But even with an average Brent price of $64 a barrel last year, most companies were hardly able to balance their income with their spending.. The oil majors were entering "survival mode" in these market conditions and will have to assess where they can cut spending, Jefferies analyst Jason Gammel said in a note.. "Buybacks and dividend growth are now almost off the table, and questions on who will need to cut the dividend first will be topical," Gammel said.. BP ( BP.L ) last month said it would raise its dividend, even though its profits last year fell by about a quarter.. Majors including Total and Royal Dutch Shell, introduced scrip dividends after the last slump, which allowed them to issue dividends in the form of shares, rather than cash..