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Charlie156. Acting like a proper charlie. So like a child.
Straight onto the filter list.
"They have already said that the divi is fixed for 5 years.I can only go with what has already been made public."
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I concur, but given how fickle the investing community is and their sensitivity towards their annual payout, the yield levels will be reviewed every year. And they should in any dynamically run business. Just a good business practice.
Sell Rdsb buy bp? Or is the rise priced in 2%-3% hike takes it to 303p-307p at a push post results. Not much in it there after unless you’re expecting the sp to exceed its current level going into sleepy august. Personally if I were lucky to have bought Rdsb on the recent dip I’d pocket the 7-10% rise and sit back out or maybe chance a slight rise on bp result after that is anyone’s guess I just don’t see any strength on oilers when it comes to sentiment vs profits.
''In the same year, of course not, but in the subsequent financial year, they will have to consider the benchmark div yield curve.'' They have already said that the divi is fixed for 5 years.I can only go with what has already been made public.
Gavster, why do you keep igniting the interminable dividend/buyback debate and continually bore the pants off posters. BP's dividend policy could not be clearer, they are not going to change it with 6 months higher oil prices or your incessant whining. I really hope shareholders reap the share price bonanza they are expecting next Tuesday, otherwise the Priory is going to be inundated with BP/LSE posters. God help anyone unfortunate to be sharing a room with Gavster.
"If they cancel £2billion worth the shares then they are not paying it in divi"
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In the same year, of course not, but in the subsequent financial year, they will have to consider the benchmark div yield curve.
RDSB divi was 47c before the cut and is now 24c ie 51% of what it was.BP divi is 50% therefore no incentive to increase it.
Gavster
You make your point very well, as always.
Let's hope Looney delivers for us.
:-)
Hi Happy
We must agree to disagree.
https://renewablesnow.com/news/lightsource-bp-buys-845-mw-solar-portfolio-in-spain-731308/
I was happy to see this Spanish deal and I would happily see more investment like Iberia Solar, whether it's stakes in private or listed companies.
I mention SSE specifically as they have ambitions to be the worlds expert on windfarms so would be perfect to partner or takeover to develop the offshore windfarm rights that BP spent so much on.
https://www.thetimes.co.uk/article/bp-splashes-out-with-huge-bet-on-wind-farms-in-the-irish-sea-jx508ln6c#:~:text=BP%20will%20pay%20more%20than,the%20Treasury%20and%20the%20Queen.
Gavster
On this, I disagree strongly. I have absolutely no interest in BP buying equity stakes in other listed companies, which I can buy myself should I choose. Rosneft is a special case given the history with Russia (they allegedly almost killed Dudley before he returned triumphantly some years later to tie up the Rosneft deal with Putin!).
BP is cheaper on a operating cash flow basis to the commodities names that you mention (some of which I own, too). I would prefer a higher dividend but, failing that, buybacks it is.
Best
Happy
Best
Happy
correct - just generating more cash to spend on renewables or buybacks
'Sorry, but no!
It simply means the same total amount of Div in $ will be higher for each remaining holder.'' BP have fixed the divi at 5.25 cents. If they cancel £2billion worth the shares then they are not paying it in divi.
Hi meshtrader
"As for investing in other commodity firms, strategically speaking, this isn't an effective tactic."
IMO For BP this has been a tower of strength. Their shares in Rosneft have been an important part of BP's income for years and I doubt many would feel it has been a "Ineffective".
I would be more than happy to see BP take stakes in energy companies like Bluefield of the Windfarm arm of SSE for example, than hand it over to any old tom dick or harry via buybacks. The only buybacks I would vote for are those to counter bonus issues, but then I never agree to the BOD's issue of them in the first place. As a side note, I see this as a trend in AGM election results.
Hi Hassa
"US shares but would need to sell to enjoy any income from them"
This is part of the reason there are many index doomsayers when inflation bites, Buffet amongst them.
"If BP buy back £2b shares then they save £100 m on divis."
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Sorry, but no!
It simply means the same total amount of Div in $ will be higher for each remaining holder. Share buybacks, serve to increase the share price as the total number of outstanding shares decreases.
As for investing in other commodity firms, strategically speaking, this isn't an effective tactic. If commodity players have investments, or stakes in each other's businesses, then you won't have enough autonomy to pivot at critical juncture. Better to develop a much stronger relationship with your core shareholders so they stand by you during good as well as bad times.
On this point, I tend to agree with mr Buffett, if a company's leadership believe they can beat the market returns, they should keep investing in their own business instead of distributing the cash. If not, hand it over to me and I will make my own investment decisions.
If the annual buyback were 2 bill,, I would want every penny put into green transition. Not because I think green transition is a good thing. But lots of cappuccino drinking, avocado munching fund managers do. It would assert BP as a growth company and not value for a start.
Touche I’ll eat my prawn sandwich then lol in any case difference of opinion I still believe buybacks add 0 value over the long term you’ve just cancelled shares which you can later increase through RIs or employee offerings. Their rostneft stake is testament to buying other company shares as it’s a good earner for them. Good luck with your investment I’m going over to sse for a nibble post ex dividend drop.
'If bp put 2 billion into Rio they’d earn 100 million dividend annually.'' If BP buy back £2b shares then they save £100 m on divis.
Pension funds don’t agree look at the sp of those companies even glencore the coal demon. If bp put 2 billion into Rio they’d earn 100 million dividend annually.
''If shell used the high oil prices to say buy some shares in a Rio / AAL / BHP they’d have some energy diversification ''.These shares are not green enough.BP will get slaughtered if they buy these.
Hi Happy.
Disagree. Looney said that with regards a lower oil price, and it is now much higher and times have changed. If Looney wants to keep the company as a proposition with any reputation with investors he must increase the dividend, rather than see a favour to RDS.
Buybacks are no good IMO. Just look the amount spent over the years , 10s of billions given away for the sake of issuing shares and bonuses.
The point is, BP investors will not enjoy seeing RDS leap ahead in Market Cap and share price and it will be entirely Looneys fault by favouring buyback instead of a proper shareholder return.
Gavster-NBC
I, too, prefer an increase in dividends but Looney has said it's fixed and excess cash will be returned via buybacks. One positive is that when the SP is so weak v underlying operating cash flow and financial performance, big buybacks should have an outsized impact on the SP.
I think all those saying a return to the pre-pandemic SP in the near-term is optimistic are wrong. I still maintain we have a good chance of seeing 450+ by year-end especially if the pandemic recedes (the signs from the US, UK and Israel are quite encouraging). RDS probably has the world's best integrated gas business so is benefitting from high gas prices. Our refining portfolio is nicely geared to aviation fuels so should do very well when the aviation recovery is at full pelt.
Best
Happy
All good news from BP's nearest peer, culminating in a dividend increase from 17c to 24c.
That will surely make BP follow suite, and the SP will surely follow upwards.
Personally I much prefer dividends, reinvestment, increasing the business or paying down debt to buybacks, ie. BP's cash should stay within BP's hands.
Cheers and GL.
I still don’t get why they are doing share buy backs been long discussions on here about it. In my opinion they’d be better off buying other company shares than their own and cancelling them. 2billion can go a long way into their transition too. If shell used the high oil prices to say buy some shares in a Rio / AAL / BHP they’d have some energy diversification when it comes to the ev supply chain.
An increase from $8.3bn to $12.6bn quarter on quarter.
Our equivalent Q1 operating cash flow was $6.1bn but it was probably flattered by very strong trading results (which BP do not separate out for commercial reasons). However, even if trading is somewhat weaker against a very strong Q1, an increase anywhere near 50% in underlying operating cash flow (ex-trading) would still see us comfortably beat Q1 overall.
I really hope BP is aggressive about H2 buybacks. I would go even bigger than $1.5bn as there is so much surplus cash sloshing around.
Let's see.
Best
Happy