focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
A £30m share sale is not responsible for a 6% fall in the share price of a £20bn company.
The ruling is backdated from Dec 20, so today FD is valued at $22bn, with the 5% yearly increment. Fox have 8 years before they have to hand the money over, without having to fund the development of the FD business, which ain't great. We have to wait until 2023 until we get a ruling on the FD IPO. Besides the near doubling of the initial $11.2bn valuation, there is still a great degree of uncertainty.
I bailed out at £4.96 this morning. The yield and cable rate were starting to make me feel a bit twitchy. If the opportunity arises to get back in, I'll be happy to do so. If not, I'll move on. GLA.
The trading anomalies thrown up here are eye catching. To think that on July 14, when Brent was $107, BP's buyback for that day was £3.668.
You nailed it Dowsie, you made a return on your investment. To date, even the fabled DK can't say that.
The CFO Auchincloss sounded very bullish yesterday, and with the buyback, should underpin the share price. Yet, the shares are yielding 4.1%, which historically is low for higher risk O&G investments. That will restrain further gains, unless BP change the 2020 dividend policy, that was set in a completely different environment, compared to today. In the last year the company has spent $10.5bn on buybacks, $10bn on debt repayments and $4.4bn on dividends. Switching $3bn from buybacks to dividends would restore the dividend to 10.5 cents, the figure before it was cut. At a share price of £5, the yield would be 7%. The shares would fly.
Vesa have received circa £110m in dividends over the last 14 months, handy for even a billionaire. The prospects of dividends over the next 12 months are uncertain at best. Vesa have 2 years until the likelihood of a Labour govt, which will focus their thinking. As much as they must be salivating at getting their hands on GLS, the UK business must be giving them the heebie-jeebies.
Exxon and Chevron deliver strong numbers today. Has BP's buyback finished, resulting in the flaky performance today?
Harmonica, thanks for correcting my lousy grammar. Your a diamond.
Where have you heard that? I believe the dividend policy is a once a year increase in August each year until 2025.
Teslo, may I suggest you donate whatever profit you made on this morning's trade to Cancer UK.
You only come on here to brag and belittle. Your a cretin.
The buyback figure put forward by Jefferies surprised me. I wasn't expecting BP to even maintain the $3.5bn buyback for the next quarter, let alone increase it. Maybe BP traders have had a stellar quarter(strong Q1, average Q2). Anyway, $3.5bn is the sweet spot for shareholders. We'll see.
https://seekingalpha.com/article/4547958-archaea-energy-bp-bags-a-bargain
Moy, BP discovered 2 ultra deep multi billion barrel fields in the GOM in the early part of the century, Kaskida and Tiber. The technology did not exist then to develop those fields, it does now which Chevron has shown. If BP gave the green light to one of those projects, it would be a significant boost to BP's O&G output. At present BP spends most of its hydrocarbon Capex on just maintaining its operations. The vibe I get is that the BP of today has its heart set on becoming a renewables company as quickly as possible. 2030 seems to be the date when BP believes it's renewables will begin to make a serious return, until then they will cost shareholders billions of dollars, added to the lost earnings of selling off 40% of its O&G portfolio, at a time when prices have been rampant. To date, Looney's strategy has failed, to its shareholders cost.
BP have allocated an extra $500m to O&G capex this year, in recognition of the high hydrocarbon prices. A pittance. What this deal highlights is the prowess of the Rice brothers, in creating a company in 2021 valued at $1.15bn, and selling it a year later for $4.1bn. Their US listing RONI is valued at $426m(cash $350m). One to watch.
19.10.22,(19.10.21) price per tonne,
Copper-$7317($10,563)
Zinc-$2866($3,728)
Lead-$2043($2,425)
Total-$$12,226($16,716)
CAML is still making a decent return, just a lot less than the glory days of a year ago.
In 2020 BP sold its Alaskan O&G assets for $5.6bn. Those fields produced 74,000 boed in 2019, BP also threw in its stake in a pipeline system. Today's deal sees BP paying $4.1bn for 6,000 boed. BP have made their move to renewables ten years too soon, missing out on the price bonanza on the assets they sold, to their shareholders detriment. The sustained lack of industry investment over the last 10 years means there will be higher O&G prices for longer. Kerry Packer said 'You get one Alan Bond a lifetime'. The owners of Archea must be saying the same about Bernard Looney.
This is the sort of deal that reminds investors of all the doubts they had about Looney and his strategy. The demise of hydrocarbons is a narrative that is not playing out, and BP are showing they don't have the agillity to adapt. Come 2030, O&G will still dominate, and with Looney selling off those assets on the cheap and wildly overpaying for renewables, BP's O&G portfolio will be down to the bare bones.
$4.1bn for 6000 Boe/d. Looney overpaying again.