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2.2% yield and faith needed that management will deliver. In today's market that's not much of an enticement.
I don't see how Looney can keep his job after those comments. Selling 40% of the company's O&G portfolio which returns between 15-20%, and replacing it with renewables that in 2030 could return 10%. Now it appears he is rowing back even from that figure. This whole venture has been his call, the dividend was halved and the share price tanked. Now he's telling colleagues he's disappointed with the financial returns, not as disappointed as I am with Looney's destruction of shareholder value.
Chevron missed Q4 expectations on Friday, I'm expecting a consolidating Q4 from BP.
No dividend increase, and with the dollar falling against the pound, the sterling payout will be reduced from Q3.
Buybacks $1.5-2.0bn.
Debt increase due to Archaea purchase in Q4.
There won't be any talk of present renewable earnings, as they scale the business the next couple of years will see heavy losses. Selling so much of their O&G portfolio over the last few years has cost shareholders billions, compounded by investing billions in loss making renewables, for some 2030 nirvana apparently.
The year on year UK parcel volume decline of 20%, and the pre-pandemic UK parcel volume decline of 6% stands out. I'd like to know how that compares with their peers.
Ahead of Friday's results Chevron announced a tripling of its budget for buybacks to $75bn, although no timescale was given, plus a 6% increase in its quarterly dividend. Exxon has committed to spend $50bn on buybacks from 2022-24. With Apple spending $90bn on buybacks in the last year, it all makes BP look like small fry.
Zac, BP bought back 1.90bn shares in 2022, saving $456m yearly in dividends. They also issued 316.7m shares in the year. This dilution means that at a share price of £4.80 and cable rate of $1.233, BP has to spend $1.87bn to cancel those added shares. Basically, one quarter of buybacks is needed every year to take those extra shares off the share register.
Dividends paid in 2022
March, 19.7bn shares @5.46 cents=$1.076bn
June, 19.5bn shares@5.46 cents=$1.065bn
Sept, 19.0bn shares@6.006 cents=$1.140bn
Dec, 18.30bn shares@6.006 cents=$1.099bn
Total=$4.38bn
y11, I closed yesterday's trade. Sold 8070@4.8266 at 08.48:53. I won't do this again, because it's a bit tacky and your a time waster.
y11, another bold unsubstantiated claim. How about the two of us post our BP trades on here, to remove any BS possibility. I'll start, I bought 8070@4.723498 at 12.04:35 today.
Theaky, BP in 2022 spent over $10bn on buybacks and also over $10bn reducing its debt, as well as paying over $4.4bn to shareholders for the year. The share price at the beginning and end of 2022 shows the increase in shareholder value. The balance sheet is far healthier today, leaving the flexibility for the company on how it uses its future FCF. I agree the balance in 2022 did not maximize shareholder value. Nothing drastic, just a minor tweak of a $6.6bn dividend, $9bn buyback and $9bn debt reduction would I believe today see a share price north of £5.50.
The dividend policy until 2025 is $4.4bn divided by the number of ordinary shares, increased yearly in August.
Hopefully the company is back on track. If Montara is still shut in March, the market will not be impressed and Jse's wafer thin management credibility will take a further hit.
When Ruth Edwards asked ST whether Royal Mail prioritised parcels over letters, he replied 'That's absolutely not true'. This caused the Roger Whittaker lookalike sitting behind to sharply raise his eyebrows. The evidence that was then put forward called into question ST's assertion. The chair of the Select Committee stated he was unsatisfied with ST's performance and warned him about the consequences of misleading Parliament.
Jezzoo, if y11 can post nonsense, why can't I.
I followed your advice last time, and lost £20k!
Your posts are far too long. May I suggest as a holiday read, The Intelligent Investor by Benjamin Graham.
There are some TAF posties on here who are trading this stock far more effectively than you are.
TM, your analysis of TOD was spot on. Any more posts like that and his fragile ego will filter you.
While the market is focused on a temporary demand dip, the chronic underinvestment in O&G supply over recent years is the central issue. Oil at $80-100 is the balance point for a functioning oil market. BP makes a decent return at $60, the O&G prices in 21/22 have put its balance sheet in good shape to handle the vagaries of the oil price cycle.