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Today’s blog is a short “flash” blog only due to other commitments
Yesterday Woodside Petroleum’s (WPL’s) shareholder recorded some dis-satisfaction with the company at its Annual General Meeting. The vote on the remuneration report recorded a more than 25% vote against and as such this was a “first strike” under Australian company law. If a second strike was recorded next year, then the Board would be required to call an EGM at which all Directors would be spilled and up for re-election.
The very large bonus received by WPL’s CEO, in a year in which shareholders suffered, was the primary cause of the negative vote. The words after from the Chairman about “paying up for talent” was demonstrative rubbish in the current climate. WPL’s Coleman could never find a job paying that much if he was out on the street tomorrow. Labour markets are grossly economically inefficient and one should not pretend otherwise.
As we have long predicted, we also expect Santos’s shareholders to register a “first strike” at its upcoming AGM.
Oil prices re-traced overnight by around 2%, with Brent closing at US$44.53 and WTI at US$43.18.
No particular issue drove the fall – rather it appeared to be just some profit taking after a few days of strong growth driven more by a view of the long term fundamentals rather than the short term supply/demand balance.
Henry Hub closed flat at US$2.07.
Quote of the day
No doubt not all of the grizzled oil veterans who read oil blogs are fans of the artist known as Prince (previously known as the artist formerly known as Prince), who sadly died last night – but what the hell – some lyrics from one of his classics, Raspberry Beret:
“Seems that I was busy doing something close to nothing / But different than the day before / That’s when I saw her, ooh, I saw her / She walked in through the out door, out door”