Anglo-Iranian Reports

OIL & GAS

Anglo-Iranian Oil Co. had some bad news for Iran. Last week in his annual report for 1950, Anglo-Iranian Board Chairman Sir William Fraser disclosed that the company has already made up from other sources two-thirds of the oil lost when its property in Iran was nationalized. The squeeze on world oil supplies, which had been a strong bargaining point for Iran, was fast ending. Production has been stepped up in fields in which Anglo-Iranian has an interest in Kuwait, Qatar and Iraq.

In Kuwait alone, where Anglo-Iranian splits production with Gulf Oil Corp., output is close to 800,000 bbls. a day, compared to 640,000 bbls. a day from Iran before nationalization. And last week Anglo-Iranian and Gulf assured the steady flow of Kuwait oil by signing a 50-50 profit-sharing agreement with the Sheik of Kuwait. By expanding its refineries all over the world, Anglo-Iranian expects to make up by 1953 for the loss of the Abadan refinery.

Increased production, sales and prices raised Anglo-Iranian's net profit in 1950 to $94.5 million (v. $51.6 million in 1949), the biggest ever earned by a wholly British corporation. Despite the nationalization trouble, stockholders will get their regular 30% dividend* or 84-c- a share. Iran's slice for 1950 was $45 million in royalties. If Iran had accepted the company's 1949 proposal to increase royalties, Iran's 1950 royalties would have been $94 million. This year, said Sir William, under a new proposal for a 50-50 profit split, Iran would have received about $140 million. In short, with oil and money so plentiful, Anglo-Iranian might well have averted the trouble in Iran by a more liberal use of American-style industrial statesmanship.

* Not as high as it sounds, since in Britain it means only 30% of the stock's par value ($2.80), not its market value ($15.75).

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