This is now a 3 quid share. Investors will have to wait until the latter part of the decade to witness any meaningful return on its green investments, which in 2020 produced 33,000 boe a day, which is diddly squat. Only oil at $68 is keeping the share above £3, Looney has sold over $13 bn of BP's assets the last year and waved goodbye to hundreds of millions of profits. What is BP's place in the oil and gas industry. Chevron have started developing the ultra deep Anchor field in the GOM as new technology makes it viable. BP has similarly placed fields, Kaskida and Tiber, multi billion barrel assets in the Gulf. BP was once a pioneer, now its an also ran, a rudderless ship with a CEO destroying shareholder value.
One of the reasons I invested in CAML was its ultra prudent management. You can't have it both ways. The market doesn't fancy it much, but I view it as a rock solid 5% yield, catching some of the upside in metal prices along the way. I've had my fill of AIM punts with dodgy management.
RE: RNS - commencement of buybacks28 Apr 2021 14:22
The dividend cut leaves BP with a 5% yield at 3 quid. Oil companies have always had a built in yield premium, because you never know when a Macondo might happen. Four pounds gives a 3.75% yield which is far too high for an unproven CEO who is dismantling the business and reconfiguring it into areas where it has no expertise. Looney seems to have a bit of a fan club on here but the institutions won't go near BP until they see evidence of his strategy working. That is years away, until then we face the hard sell every time we visit its petrol stations of buying a coffee, doughnut or one of its renewable egg and bacon sarnies.
RE: RNS - commencement of buybacks28 Apr 2021 10:30
Yesterday's conference call was dominated by buybacks and renewables, with very little on O&G. If you have to continually explain ad nauseam, how the buyback strategy works, either people don't understand it, or don't believe it.
If Looney had announced a 50% dividend increase and progressive dividend policy instead of the convoluted drawn out buyback palaver, the share price would have jumped. With a figure of $4 billion for buybacks put forward, it adds up to the same. I've just listened to the conference call, it's mostly flannel and a tough listen. This quarter their trading division made the right calls, the last one Q4 2020, they did not. Looney's ego will continue to cost shareholders dear.
Just heard Looney on Sky. His accent is like his strategy, all over the place. Going on my gut, the foundations do not feel right here. In his interview he never referenced shareholders once. It's like listening to the head of some cult.
Significant drop in oil production is camouflaged by exceptional performance of trading division and recovering oil price. At the end of 2020 BP was generating 3.3 GW of renewable capacity, that's 46,000 boe, I.e diddly squat. Tens of billions of dollars will have to be spent to reach its 2030 50GW target. As BP sells off the family silver, that becomes more and more of a conundrum. Hope the conference call later isn't the usual schmoozefest and Looney's destruction of shareholder value goes unchallenged.
Buybacks are such a laborious process. The 50% dividend cut last August has really knocked the stuffing out of BP. Looney has to grab the market's attention in delivering shareholder value. A 50% dividend rise and progressive dividend policy would have investors flooding back. The company can more than afford it, and they are still saving over $2 billion a year on the old dividend, that Looney can use to save the world.
CAML's basket of metals is having its best week ever since the 2017 Sasa acquisition. Debt and interest rapidly falling, new reduced treatment charges contract. The company said in April 2020, it was still a profitable business with copper at $4774, lead $1600 and zinc $1800. Today those prices are $9500, $2000 and $2800.