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Smithy, I'm not sure if you are thick, obtuse or just a Motley FOOL. Your posts are infantile and lack cohesion or sense.
Are you struggling with Covid, and the strain that most others are coping with?
Q2 will be 'interesting' nothing more.
Your making this all up. You realy need to read my posts digest them and then post on what I said not what you make up in your own head. Again read my posts
With cost of extraction, BP extraction revenue should be almost double what was originally anticipated.
Then we have their rather successful trading department. Plus downstream value added.
Can’t wait for Q2 results!
Licker - your argument for a dividend increase has been based on the current oil price increase not future alone. All I said was it would be irresponsible for a CEO to change a 5 year shareholder returns strategy based on an increase in oil price for 5 or 6 months.
I can't exactly remember the figure that was used as the assumed oil price in the strategy plan. I think it was around $55 per barrel. Whilst it is currently higher no CEO will base a change in policy on such a short timescale given that Brent crude was around $50pb at the year end.
I was talking about future price in my post you you said I was basing it on 3 months. Have a re read
I was talking about future price in my post you you said I was basing it on 3 months. Have a re read
licker - no hidden agenda. I'm not aware I've misquoted you on the oil price. Please explain.
....which is a proxy divi anyway. A buy back increases shoulders value. A buy buy is paying out all future dividend rights discounted to today's NPV. Therefore its the opposite of dilution so increases shareholder value for the remaining shares
I take offence at you misquoting me on oil price. What's your hidden agenda?
licker - you can assume what you want. Just so I'm clear, what is that you're saying? Is the CEO likely to increase the dividend or not?
I'm clear in my view. There will be no increase to the dividend and excess cash will be returned via share buy backs as stated.
A 50% price increase possibly 70% unplanned for on your main product is a material strategic event. I assume you aren't a business man
No please read my posts correctly or don't bother replying and wasting my time. I was basing on both current and forecast by every analyst report
licker - so you expect BP to change their 5 year income strategy based on an oil price increase over a 5 to 6 month period? Not a chance! And it would be irresponsible if they did.
And as for fresh oil price forecasts . . . well I've seen nothing from BP.
They've clearly stated what they'll do with any excess cash they generate. They'll return at least 60% of it via share buy backs. That's what they're planning to do with it, not increase the dividend!
Check the oil price he based his strategy on vs price now and forecasts. He didn't build that factor in
Lol smithy, basically what codders / smithy said. I'd rather see BP use this time to strengthen and use the money. I can see why others especially those that need div now this wouldn't be great, but for me Id be happy to wait longer for a div increase and see the company grow and have a safety net incase anything happens in the short - medium term. Covid crash wasn't that long ago, we are in turbulent waters still, I think it would be risky to spend money now after they have had a good start, less it be undone.
If Looney had any sense, he would reinvest the lot of it. big stonks value in 5-10 years over greedy divvy today.
And what major event has changed?
I'm sure a few on this board work in senior posts in large companies and are very familiar with strategies changing when major events change
Only a loony would do nothing
Some good finds Gavster.
Re the dividend the policy is at present very clear. However.......
Nobody anywhere in the world saw oil at this price and that brings with it a shed load of unexpected cash pressure from pension funds and large holders .
So whilst the current policy is clear I could easily see a small rise in the dividend as well as the other plans being carried forward......
Looks like it might be 5 out of 5 for rises....Happy Daze
Gav, as you won't take looney's word for it that he has reset the dividend to this level, simply explain to me how they will pay for the dividend to go back to its pre covid levels?
Do you really think they raise the dividend while returning 60% free cash flow to investors via buyback, and pay down debt, while heavily investing in green energy all while reducing oil and gas production by 40%
Add to the fact that the previous dividend was funded by borrowing, and the current questions regarding future covid issues and the acceptance that demand will aggressively fall as economies switch to green energy.
Wouldn't you rather a resilient dividend and investment for future growth?
His job is not to return short term returns to shareholders but to safe guard the buisness as it transitions while returning reasonable returns to shareholders imo
Now that the oil price is back to pre-pandemic levels. The pressure on Looney must be mounting to restore the dividend and in so doing restore the share price to pre-pandemic levels too. Small cappers and big cappers alike are already doing this.
The fund managers I imagine will be on his case. His job will be on the line if he doesn't provide share holders the best value, and that means restoring the dividend or spend big on new projects.
He talks buyback. We have a low SP so the buybacks surely must be happening to take advantage, yet they are currently not. The problem with buybacks is that they don't drive the market cap, whereas dividend levels will due to how markets attach yield.
Surely there is more cash than the 400m spent on the Spanish Solar farms or even the wind farm projects.
Where is it ?
All will be revealed in the results.
https://www.exchangerates.org.uk/commodities/live-oil-prices/BRT-GBP.html
https://www.worldoil.com/news/2021/4/27/big-oil-sees-cash-rolling-in-but-investors-won-t-get-it-yet
https://www.barrons.com/articles/roku-stock-can-keep-climbing-this-analyst-says-its-not-because-of-comcast-rumors-51624571776
https://www.theguardian.com/business/2020/sep/10/bp-takes-11bn-stake-in-offshore-wind-farms-as-it-agrees-equinor-deal