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Re CNBC and others, they love loaded headlines like profits plummet. If you take a step back, BP overall doing well and making lots of cash, despite what analysts say and big market players always wanting to push prices up or down to gain millions.
Profit for the period attributable to bp shareholders is $4,858 bn for Q3. That's a big number whatever way you look at it.
We do need a new CEO though. The delay is a disgrace.
I'm long and staying long!
CJ1986, there's nought wrong with 'white middle aged men', being one myself !!, though I do get your meaning !!
All IMHO DYOR ETC BLAH BLAH BLAH...
This is just the usual over reaction from Mr. Market
Yes, it could and probably will dip lower and traders may try push it below the £5 mark, but how and when does one catch a falling knife attached to an elastic band..? Fundamentals are all still the same from where I'm sat.
Even if you take the current SP and factor in 1.5 billion in share buybacks, that takes approximately 300 million shares off the market and when you divide the current Mcap into the future less shares in issue, very rough calculations underpin an SP of £5.15 or thereabouts.
(Because very roughly one could divide an Mcap of £86 billion into 16.7 billion shares in issue - after buybacks if the SP languished)
Bo's biggest problem as with so many companies now is clowns sitting in jobs at board level who shouldn't be there, but are there because they help tick off some diversity quota rubbish. Get the best people for the job who will deliver, heaven forbid that might mean a board full of white middle aged men. How terrible...
And stop pandering to the 0.001% of the population who want to crash the entire global economy by removing fossil fuels, yet totally oblivious to their ridiculous hair dye being made from byproducts of petroleum.
Kiss of death
SP performance, not acceptable, is it?
Sorry about typos lol in last post.
Best of luck everyone
Happy
Is there a set date that bp buys any shares required for distribution as script dividends, or is it a case as they are purchased on the dividened payout date.
Well said Driftking.
No acceptable, it it?
All IMHO DYOR
Happy
Last time mention the gap :-(
If we compare some gains here v UK stocks from 1994 to 2023 October 26th
XOM +750% plus dividends( USA)
SHEL 144% plus dividends in that period
BP. 320% plus dividends
CVX. 700% plus dividend's (USA)
OXY. 5800%! plus dividends ( USA)
including
BHP + 1,025% ! Plus dividends along the way!!
Diamondback Energy +780% (2012-2023) + dividends / special dividends (USA)
COP +950% plus dividends(USA)
Enough said!
Clued
"If HMG was sincere about ESG then they wouldn't even charge for such Wind licences"
HMG think they should tax/make money on everything including the wind.
I would very much favour this being a large retail investor in both (slightly more Shell).
We need scale to compete for investor interest v US peers.
Shell should effectively BP in an all-share deal and relist in the US, where the combined entity would have about 50% of its production by the end of the decade. Right now, this is the deal that makes more sense.
All IMHO DYOR
Happy
Gingy, aren't US funds and other large traders operating 24 hrs ?
Still have my core ISA position, which is separate.
I think very strong underlying O&G operations including start-up of some big projects during Q4 will increasingly drive performance through 2024. I think the next 8-10 quarters will be better than the last. The wind impairments are a concern, but they are not a cash cost. Also, the wind impairments will hopefully refocus the board's collective mind. They need to curtain spend less on renewables and pivot back more to O&G. That's where the proven returns are.
For more operating cash flow of $35bn against enterprise value of $110bn (round numbers) are the two figures to keep in mind. That's a multiple of not much over x3. That is still a 50% discount to Exxon and Chevron. So a total no-brainer as an investment v peers.
Given terrible SP performance, BP has a huge "X" marked on its forehead. They have never been more vulnerable to M&A activity. So lots of good reasons to hold for 12 months and reassess. I think today's losses will be fully recovered over the next few trading sessions. If not, I will add again.
All IMHO DYOR
Happy
Again, why does everyone want massive dividends??
Try and understand, the higher the dividend gets it stunts growth for the SP and shareholders appetite to invest.
Look to USA oilies and how they grow their dividend.
I have CLEARLY pointed this out below somewhere.
Uk oilies severely lag US counterparts but double the percentage from 1994-2023, and even 2020 to 2023.
The 4% is a current a good level to be at rather than go back to the 6% they used to pay, then had to cut. NO USA oily has cut there dividend, but UKS have many times since 2009
Gla
I hold both UK & USA oilies and afraid USA oilies performing much better since 2011 against each other
Happy, I wish she'd asked if he was happy with the share price and not the business itself, its clear the business is performing but it isnt translating to the Share price
They qualified they took the impairment due to accounting partners (externals) mark to market accounting of their assets. I don't think its about massaging the good news when they've been unsuccessful in renegotiating the NYC wind bids.
OSG - "It's falling because it missed guidance but what with impairment charges and one offs for gas and wind how much of it was intentional?"
That's my point! Oilers (in UK/EU at least) dare not say anything upbeat, they have to massage all the good news away and temper it with write-downs and impairments. Being in a position to use 40% of profits to give us all a bigger slice for the future is pragmatism as far as I'm concerned. But I'm talking my book - I topped-up a little this morning....;-))))
Is this going to drop more when the US market opens.
Lydia Rainsforth
1) Are you happy with BP performance in this oil price climate?
Murray: operating performance is excellent. Operating capacity running very very strong. Two places challenging. Retail margins diesel, fuels. Market oversupplied. Can't change very quickly. Trading has been a very very good year. But lack of structure in Q3 in the market. None much we can do. "overall the business is performing quite well". In the quarter, most of the miss was on the side but expectations got a bit ahead.
Gas trading explanation.
Gas volatility was low because there weren't many trading opportunities. So they allocated more to oil trading, which worked out pretty well. I trade gas futures and understand this. As Murray said, this can change quickly and it's reasonable to expect trading volatility quarter-on-quarter.
GOM and BPX (Shale) will increase production to about 1m a day towards end of decade (currently combined 700k). 50% of production will be from US. This is answer in case anyone asks why a US supermajor may be interested. Exxon could acquire, integrate the US portfolio, add 1m boepd and sell assets everywhere else. Acquisition at this price would pay for itself over 3-5 years.
All IMHO DYOR
Happy
Yes Happy. If HMG was sincere about ESG then they wouldn't even charge for such Wind licences which I was surprised at tbh. Imagine if every new business setting up had to bid for some type of licence, eg Fast Food, Clothes Retail, etc... !! And the wind resource isn't the UK's, it is a moving global energy.
It's falling because it missed guidance but what with impairment charges and one offs for gas and wind how much of it was intentional?
The situation in the Middle East presently combined with winter will no doubt work to BP's advantage and let them keep fuel, petrol and diesel prices high.
Grezzz, yes, what a stupid thing for Looney to say and it haunts BP still. BP have written off over USD500m re offshore Wind, no reference to that by what I view as a primarily robotic mentally challenged energy change lobby. Latter's focus is obsessively on Profits and not on the difficulties, and many impracticalities, in transforming. If people are so against Oil then don't buy it !! Instead buy a horse and cart !!