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super.
Paying a dividend to treasury shares is a violation of section 726 of the companies act. It doesn''t happen, there's no need to wait and see.
Roll on April I need the get some of these baby’s in my isa before they hit £10
Let’s wait a few days then - until the dividend arithmetic confirms that the BB shares are included in the denominator (or not).
It doesn''t matter whether they cancel them or not, once the shares are bought back into treasury they don't get dividends anyway.
Companies tend to only cancel them all once the buybacks are finished so they only have to do the paperwork once. It really doesn't matter.
Not as many as I thought.. And someone mentioned the BB's are not even being cancelled ? ? ?
https://www.bp.com/en/global/corporate/investors/information-for-shareholders/shares-in-issue-and-share-buybacks.html
Charlie156 - Hi, I've used the following data:
Q1 - 0m
Q2 - 115m
Q3 - 221m
Q4 - 46m
Ytd - 382m
Cheers
Zac there have been 2 separate buyback schemes this year. The first one related to shares issued to employees. Are you combining the two?
Charlie156 - "With 9 trading days till results, BP has spent £852 million on 273 million shares at an average price of £3.12 . . ."
I agree with your average price per share but they appear to have bought back 382m shares at a cost of £1,196m year to date. So, about 1.9% of shares in issue at the start of the year.
No its not his strategy and fwds earnings guidance was based on $60 people. We are now 40% above that
No its not his strategy and fwds earnings guidance was based on $60 people. We are now 40% above that
Riddle of The Buy back shares: - all calculations and extrapolations as to their effect on the current SP are purely academic - until they actually cancel the shares bought back.
Some rough back of the envelop numbers. With 9 trading days till results, BP has spent £852 million on 273 million shares at an average price of £3.12.
It was noted on here, maybe by HappyInvestor, I did not verify myself at the time, although the comment was that after the Buy Back Programme, there would be something like 10% less Shares in Issue..
Anyone verify / confirm or clarify this ?
IMO, for the LTH's in BP, further buy backs are more beneficial and should continue.. It's easy for the Behemoths like BP to constantly increase through Options, bonuses etc.
IMO less Share's in issue now and a further reduction through buybacks are better to increase the floor of the SP, and even the 4% increase in Divi's could be justifiably improved on, as less shares to pay out on.
Keep buying your own BP, keep buying while it's under £4.00
Charlie and a few others please read this! Taken from Q2 results!
‘’ On average, based on bp’s current forecasts, at around $60 per barrel Brent and subject to the board's discretion each quarter, bp expects to be able to deliver buybacks of around $1.0 billion per quarter and have capacity for an annual increase in the dividend per ordinary share of around 4%, through 2025. Other elements of the financial frame are unchanged.
The board will take into account factors including the cumulative level of and outlook for surplus cash flow, the cash balance point and the maintenance of a strong investment grade credit rating in setting the dividend per ordinary share and the buyback each quarter’’
So anything above $60 for the quarter and it’s more than likely we’ll see a divi increase + buyback increase! It’s in black and white! There’s so many on here who fail to acknowledge it. I don’t know why?
Please explain your last point more
£4.00 gives a 4% yield, which for me represents a ceiling for a company in the oil business and all the associated risks. Renewables will continue to be loss making for many years to come and Looney's credibility and strategy is dependent on a high oil price. I'm cautiously optimistic for the forthcoming results, but while the trading division has bailed BP out in the past, there have been such abnormal pricing patterns I fear one or two of the majors may have made some wrong calls. I just hope its not BP.
''I'd take a special dividend over that any day!'' As I have said before, A special divi is fools gold and amounts to a share buyback by another name. If the special divi is a large amount then the share get reconsolidated (ie,you now own a lower amount than before.) If you own more than just a few shares you are now into income tax. Special divi is not so special.
Returns to shareholders...
Buy backs don't seem to make much difference to the SP that's for sure!...
I'd take a special dividend over that any day!
Good post tinker
My only response would be that the cash is piling in every day and sat in bank and will be in the eps figure. It will have to make its way back to shareholders somehow it can't just sit there and shareholders go ok.
I too should be delighted were the BP share price to reach 400p by the end of 2021. An increase in the dividend would go a long way towards that! However, I expect the Board to pay off debts and buy back shares above all else.
Forget £10 per share, short of war.
Zac,
Thanks for a bit of reality. I take on board stockready’s assessment of the effect of oil price and am myself generally optimistic about prospects. But I think we have to remember that two years ago people were paying £5 for a share returning 32p a year. We are currently getting 16p a year. I think we’ll get back to £5 and beyond but only after a succession of good quarterly results and an indication from the board that the divi increase will not be restricted to the 4% in the current plan. Hopefully, 2nd Nov will be a big step in that direction.
Tinker
Stockready1 - all good, thanks. Hope all's well with you. Nothing has changed from my perspective. I'm still heavily invested in funds and trusts. I aim to hold BP until q2 2022 and will review my position then.
I'm nowhere near as bullish as you are here and will be happy to see somewhere around £4 by the year end, although I don't think that's a given!
Zac
How are you sir?
I agreed and sometimes people under estimate what it takes for the share price to heads up. £10 is certainly unrealistic and far fetch but I think 700 can be a reality very easy on second half of next year IF oil price hit above $150 which many analysis now they think possible (if not more)
But even if that doesn't happen I believe even with $75 oil price BP will easily stay way above 600 mark in coming months
The prospect looks really strong and even with short breather and stops the push is upwards strongly IMHO
It might take couple of stops but we will achieve at 500 this year...
All the best
IMHO
Are people for real predicting / holding for £10 per share? I'd be happy with some meaningful headway being made towards the 55% growth required to get the share price back to levels achieved in 2019! Step by step and review at regular intervals. Let's not get too carried away!!