These were the first shares I ever bought way back in '75 and we've been through a lot together. Bought more in the sell offs, picked up more via the share splits and have always taken my divs as shares so my holding now bears no resemblance to the number of shares I've actually bought. If it wasn't for the GOM disaster, the various Russian problems (deals, Ukraine, economy) and now the falling price of crude who knows where we could have been - pushing £10?? Keep the faith, things will get better - just not sure of the timescale lol!! ATB.
thanks I thought that was the case ,but wasn,t sure.i have little doubt at some point these ,along with ythe oil price will rise nicely ,i.m up tp my eyes in colossal debt so really I should be taking the cach div ,but as they say in for a penny.
The scrip div price is set in advance and will not change just because the sp falls. It's swings and roundabouts I'm afraid, sometimes it is more and sometimes it is less, but in the long run you will be OK unless you expect BP to stay around 400p plus there are no dealing costs. The 3 previous divs this year have had reference prices of 487p, 504p and 482p so not a good year to be part of the scheme!! ATB
Rosneft, the Russian state-owned oil producer, fits the bill. About three quarters of its revenues come in dollars. The rouble’s recent tumble — it is down a third versus the dollar since end September — should offset lower oil prices and protect cash flows. But the rouble move will cause a foreign exchange loss, given that most of its debt is denominated in dollars. This is particularly bad news for BP. It owns almost a fifth of Rosneft. The income it receives comes via a dividend paid in roubles. Last July BP received the equivalent of $690 million. Next year that number could be zero. Rosneft will probably have a large foreign-exchange loss in the fourth quarter on liabilities denominated in other currencies. At 65 roubles to the dollar, Rosneft’s net earnings for the year could disappear, thinks Raiffeisen Bank. That means no dividends, unless Rosneft pays from cash reserves. At least BP has the financial strength to survive without the payout. But Rosneft has plans. It bought TNK from BP (for $55 billion in 2013) partly to help accomplish them. Next year, Rosneft says it needs to repay $19.5 billion of debt. Even after a domestic bond offering last week of 625 billion roubles ($10 billion) the company will need to raise more to replenish funds for investment now redirected to pay off the debt. The valuations of BP and Rosneft trail peers. Being a Russian exporter beats being an importer when the rouble falls. But that is a silver lining to a dark cloud.
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