The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
thank you!!!!!!
08:35, great post.
If Looney can cut dividends when oil prices fall, there is no reason why he can't reenstate them when prices recover and are sustained.
Zac0_4
The dividend was halved due to the price of oil being low, and so the share price spanked, and became a price that reflected a reasonable yield. Now the price of oil is high again so ergo.... It would be simple for BP to announce more buyback outside of quarterly results. Looney must be under pressure, surely the reasons why should not have to be explained.
Buybacks count more and more when the share price is low and it's low due to the dividend being halved and the price of oil being low a year ago. Surely all this is obvious.
Do not twist my words Zac. Read my posts again. I make a point about the tandem nature of BP and RDS and I would of thought it obvious the possible flight of investment from one to the other of who announces the divi hike first.
Seriously. Trying to engage in a discussion is quite impossible when basic concepts cannot even be grasped.
Zac_04. I'm putting you on filter immediately, apologies, but I feel like I'm talking to a child and having to repeat myself.
Expect no response from me from now on.
Nick R ceo of vod said he wouldnt change the div lst year and then he cut it. He's still got his job so theres precedent for a change in div in these strange times.
It's the forecasts for oil though that are really exciting for me ranging from 80 to 100+. I've not seen any recent forecast at all that shows it going down from here and I've looked at all the analysts. Of it stays flat for here fantastic upside if it goes up from here then extatic
'share price has been made low so that buybacks can be done' - made low by who?
'lack of buyback activity' - what about the $500m spent last quarter?
And I see you think RDSB will get back to 2019 dividend levels in the near future. Again I strongly disagree. But that's just my opinion.
Zac. That is the question I wrote to promote discussion this morning. So repeating my post in other words.
Looney must be under pressure to increase the dividend due to the high oil price and the lack of buyback activity.
The SP has been made low so that buybacks can be done, yet they are not. PPercy and Share-be-alright make good suggestions as to what Looney is going to persuade us is good use of earnings. I take it you don't think Looney's strategy will not change even with high oil prices. Fixed amount on buybacks announced each quarter. This promotes the question, why do you think that will work with BP investors, for example if RDS announced a return to 2019 dividend levels in Q2 ?
Gavster-NBC - the policy's laid out. So when, in your opinion, will we see a dividend increase?
"In my opinion we're years away from BP even discussing any change to the dividend policy."
No chance Zac-04. Looney will lose his job if he did that with these rising oil prices.
The CEO runs the company on behalf of the shareholders, and with a high oil price, all the holders from Joe Bloggs to Blackrock will demand higher dividends, and the CEO better deliver.
The 27th July Statement and Report on Q2 results should be very interesting. Hoping that the Company will be able to give full year guidance at that time on the basis that the oil price remains north of $70 per barrel.
The oil price has been higher than the estimate in their plan for how long? 3 months?
Their priority, with regards to dividend payments is to have it set at a sustainable level so that it can be maintained over the long term.
In my opinion we're years away from BP even discussing any change to the dividend policy.
Zac
I think it’s just that scince they wrote that plan, oil has been vastly higher than their estimates , I know they are using savings for renewable ventures but it’s nice to have hope about divi being raised and seems logical that it will be raised but the date on that will I guess be decided by BP. Always been an amazing divi payer BP
isnt BP building a warchest for green projects - hence the low distribution of divs? seems a sensible approach to me. make a load of cash & use it to build future proof assets.
If BP made a statement saying they'd increase the dividend then everyone would believe them.
Why then, don't people believe them when they say the dividend is fixed and excess cash will be returned to shareholders via buybacks?
Gav
I can imagine divided increase must be going through his mind, it would benefit himself and staff so much aswell financially but yes maybe buybacks first and get them out of the way then onto divi. Be very interested in reading any updates as soon as they come out. Looking good here on a March upto 350 now. Rotation to value is still in play I’ve read. GL
Just saw Brent nudge over £54 and $75.
Last time we had this was Sept 19 and May 19. The ADR was around $40 at both times. At todays rates that's equivalent to an SP . 470p... Which I'm sure we'd all take.
What's Looney's thinking ? If he's committed to a low dividend which in turn keeps the SP low, then surely BP should be ploughing money into the buybacks he's committed to right now, whilst the SP is being kept low.
Any whiff of a divi increase ( even at close rivals RDS ) the SP will rocket, and surely without a buyback currently going on, and Brent so much higher than in the assumptions presented by BP's quarterly statements, pressure will be massive on him to increase it.