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Because they’re buying back approx. 1 billion shares a year?
Also the dilution you talk about was due to BP acquiring BP midstream partners as detailed last year.
Personally I would like to see the share buybacks and net debt reduction continue. There will come a point when the use of capital to do these things no longer makes sense, personally I don’t believe that is now.
The company is not the same company as it was 2 years ago, either look forward or move on.
I'm all for listening to opposing views where there is some substance to that view and it is backed up by evidence, maybe I'll learn something that changes my view and my position. But I am rather bored of the eternal moaners on here.
75% of the company is owned by institutions, Theaky. I think they're onboard already.
Plus we are not moving away from O&G, it will still be a part of BP in a big way for decades to come. Debts down massively, the outstanding shares are being reduced, earnings are growing and eventually the dividend will be reinstated.
If you don't like it, well nobody is forcing you to stay. Even if I was sat on a loss, if I no longer believed in the future of a company then I'd find somewhere else to put it to work.
It’s 2030;
The outstanding share capital is 15b shares
The company is net cash
The oil spill payments are coming to an end
Revenue has increased by 7-9% CAGR &
Dividends are at 0.50c a share (slightly higher than post covid)
What’s the SP?
(I believe all of the above is quite possible by 2030 if this price environment remains at play)
You could be right, grandadtom. Although I thought that surplus cashflow was now defined after the share repurchases to cover dilution from the ESS. Therefore $1.5b should be on top of the $500m to cover employee shares. He did say that it can be difficult to complete within a week quarter and maybe they know of some restrictions that we don’t.
Hopefully the Q1 results will clear this up.
Fair enough, Zac. I do think we'll see the post covid share price coming into play over the next couple of years (maybe not as quickly as some would like), but that being said I might just look away come results day. I don't think the headlines will be pretty which causes people to panic even though I fully expect the underlying earnings to be solid.
Just had a quick look at the BP investor website, it shows the shares in issue at the end of each quarter (excluding treasury shares).
At end 4Q20 - 20,264,027 shares in issue (roughly in line with the RNS which I would take as being more accurate because who knows when the website took it's figures exactly).
At end 4Q21 - 19,642,221 (again roughly in line with the RNS at the time)
This shows over a 600 million reduction in shares outstanding but fails to show that they also reduced the treasury shares by around 100 million as well.
The numbers don't lie, the share capital has reduced significantly through 2021. Use the RNS released at the start of each month to keep track.
I'm not sure where you're looking Zac but you need to read the RNS' again. BP release them every month detailing how many shares are in circulation.
As of 4th January 2021 the were;
20,344,625,660 ordinary shares
12,706,252 preference shares
1,105,156,692 treasury shares
As of today there are;
19,609,217,196 ordinary shares
12,706,252 preference shares
1,034,433,759 treasury shares
You do the maths
At the opening bell in January 2021 there were 21,462,488,604 shares (inc. pref shares). After the admission of new shares there will be 20,656,357,207 shares in issue (inc. pref shares).
Over 800 million less shares in issue now than were in issue in January 2021.
Sorry but I’m a nice bottle of wine in on a Tuesday night. My point stands though.
SPs go up, SPs goes down, dividends get paid. If you are at a point in life where you rely on income then diversity is king (maybe put the majority in the FTSE100 which paid a good divi even through the COVID lows)