Member Info for Gavster-NBC

Published AUG 5 2020 10:14 AM EDT
When the Brent was £34
Now it is £55.
Wheremymoneygone
If you can't see the reasons why BP should increase the divi then you are a twit, and so is Looney
I've put you on filter.

Well done Temple for holding through. I have a few shares that have rewarded after adding at lower prices in the midst of the 2020 gloom.
I'm caught. 100p was my target price to take profit, now I'm considering holding for the outcome of this attention, and anyway, dividend levels like this are not commonplace.

Here's the thing...
At 330-335p is it time to sell again to trade back in lower ?
Or sit tight and await fuelled speculation about a dividend hike in the next results which would send the SP to a higher trading range..
Or accept the potential damp squib of more Looney buybacks and a muted dividend.
Or even go cash and sit tight like Buffet apparently.
https://www.youtube.com/watch?v=5UTL1iz29cY

Just bought first tranche of the summer.
Results in a few weeks. Debt should be minimal by now and the new projects progress...

Here we go again.
Buybacks DO NOT raise the value of the company.
Increasing dividend levels, increasing investment and raising income DO increase the value of the company.
Maybe rereading some investopedia basics would be beneficial.
Get it Now ?
Licker. I've put you on my filter list for that post. There should be no reason for such a discussion level on the BB of a company like BP.

Well this is better, if not a delayed reaction to the jumps in oil price. It's amazing that this is not moving higher more due to the currency rates as well. Has Seplat shot themselves in the foot wrt the share price by declaring the dividend level for the first of the quarterly dividends at 2.5 ? The market may be assuming this will be the level it stays at.

Nonsense Wheremymoneygone.
Looney has sanctioned share buybacks and you do not get more of a money waste than that. Buying back shares issued by themselves, seriously...
The Market cap currently has "takeover Target" all over it and the way to raise it is to put the divi back to it's previous level.
The sale of high cost wells and the income from a higher oil price more than takes care of the moves into greener energy and a high market cap allows takeover's of other companies that specialise and issue shares not just for the employers but to raise the size of the business and revenues. BP could easily takeover Bluefield or SSE for example, SSE has plans to be the biggest windfarm specialist in the world and 100m for the new Bluefield windfarm bond could be bought in a flash by BP.

Hi EmeraldCarrots
"And a good dividend"
It is not a good dividend, it is half of what the majority of shareholders expect.
The level of dividend is exactly why the SP is where it is, take a look at the current yield.
Both BP and RDS halved their div, so in turn the SP tanked due to low oil price.
Share buybacks only raise the SP by keeping the same market cap and lowering the number of shares.
Dividends are loved by the market and a good company that pays divs for the long term future, which BP is, will be valued by the yield that dividend makes.
The excuses Looney can make are running low for keeping such a low dividend now that the oil price is higher.

Hi ojls. Second that sentiment. Much profit taking IMO. I bought back shares I'd sold on Friday just before the 430pm bell for >3% gain.
IMO The drop in RDS/BP doesn't match the drop in Brent. Jitters with OPEC..
We'll see, Confident that if we do not shift back to 1500 in the coming days, it will certainly happen before next quarterly reporting.

I understand what you mean about the devaluing and so costs are less.
Yes, I was looking at Naire to GBP/US$ the wrong way round. Doh.. ! Too late for me to still be up.

Hi Temple, I held through and did some dividend reinvestment.
Would this have a detrimental effect ?
https://www.bloomberg.com/news/articles/2021-05-25/nigeria-devalues-naira-on-migration-to-single-exchange-rate
The rate has become lower in both US$ and GBP, meaning less Naira for each barrel, so local costs higher and less income. The POO is rising to counter this though, to the extent that the 7% drop in rates has already been made up.
Anyway... I'll hold through for now and keep reinvesting for now, 99p or 100p maybe time to top/slice take profits.

"I feel growing confidence amongst our shareholders'
Well Looney, I'm sure all those billions of holders that bought at 500p are fine about sitting on vast losses.
If the cash is rolling in, raise the dividend back up, the SP will no longer have "takeover target' around its neck and you'll get some supreme confidence from all the shareholders.

Now that the oil price is back to pre-pandemic levels. The pressure on Looney must be mounting to restore the dividend and in so doing restore the share price to pre-pandemic levels too. Small cappers and big cappers alike are already doing this.
The fund managers I imagine will be on his case. His job will be on the line if he doesn't provide share holders the best value, and that means restoring the dividend or spend big on new projects.
He talks buyback. We have a low SP so the buybacks surely must be happening to take advantage, yet they are currently not. The problem with buybacks is that they don't drive the market cap, whereas dividend levels will due to how markets attach yield.
Surely there is more cash than the 400m spent on the Spanish Solar farms or even the wind farm projects.
Where is it ?

All will be revealed in the results.
https://www.exchangerates.org.uk/commodities/live-oil-prices/BRT-GBP.html
https://www.worldoil.com/news/2021/4/27/big-oil-sees-cash-rolling-in-but-investors-won-t-get-it-yet
https://www.barrons.com/articles/roku-stock-can-keep-climbing-this-analyst-says-its-not-because-of-comcast-rumors-51624571776
https://www.theguardian.com/business/2020/sep/10/bp-takes-11bn-stake-in-offshore-wind-farms-as-it-agrees-equinor-deal

Zac0_4
The dividend was halved due to the price of oil being low, and so the share price spanked, and became a price that reflected a reasonable yield. Now the price of oil is high again so ergo.... It would be simple for BP to announce more buyback outside of quarterly results. Looney must be under pressure, surely the reasons why should not have to be explained.
Buybacks count more and more when the share price is low and it's low due to the dividend being halved and the price of oil being low a year ago. Surely all this is obvious.
Do not twist my words Zac. Read my posts again. I make a point about the tandem nature of BP and RDS and I would of thought it obvious the possible flight of investment from one to the other of who announces the divi hike first.
Seriously. Trying to engage in a discussion is quite impossible when basic concepts cannot even be grasped.

Zac_04. I'm putting you on filter immediately, apologies, but I feel like I'm talking to a child and having to repeat myself.

Expect no response from me from now on.

Zac. That is the question I wrote to promote discussion this morning. So repeating my post in other words.
Looney must be under pressure to increase the dividend due to the high oil price and the lack of buyback activity.
The SP has been made low so that buybacks can be done, yet they are not. PPercy and Share-be-alright make good suggestions as to what Looney is going to persuade us is good use of earnings. I take it you don't think Looney's strategy will not change even with high oil prices. Fixed amount on buybacks announced each quarter. This promotes the question, why do you think that will work with BP investors, for example if RDS announced a return to 2019 dividend levels in Q2 ?

"In my opinion we're years away from BP even discussing any change to the dividend policy."
No chance Zac-04. Looney will lose his job if he did that with these rising oil prices.
The CEO runs the company on behalf of the shareholders, and with a high oil price, all the holders from Joe Bloggs to Blackrock will demand higher dividends, and the CEO better deliver.

Just saw Brent nudge over £54 and $75.

Last time we had this was Sept 19 and May 19. The ADR was around $40 at both times. At todays rates that's equivalent to an SP . 470p... Which I'm sure we'd all take.

What's Looney's thinking ? If he's committed to a low dividend which in turn keeps the SP low, then surely BP should be ploughing money into the buybacks he's committed to right now, whilst the SP is being kept low.
Any whiff of a divi increase ( even at close rivals RDS ) the SP will rocket, and surely without a buyback currently going on, and Brent so much higher than in the assumptions presented by BP's quarterly statements, pressure will be massive on him to increase it.

IMO The earnings of BP could increase with Inflation and dividends will continue.
However the share price will stay very mute as company valuations go down with high inflation.
For example. Current yield of BP is 4.7%. Inflation comes with higher interest rates, the market finds valuations with higher yields.
If the dividend stayed the same and the yield were to double to 9.4%, the share price would halve.
https://www.ig.com/uk/trading-strategies/how-does-inflation-affect-the-stock-market-210423

Another drop. Perhaps it's the rain...

Newly invested here with a first position. Not sure why there is not more attention. So much cash we have a special dividend with over 10% impact. Market Cap is represented half cash. No debt. I'm still researching but so far looks great with prospects after the storage sale. There must be a downside. ... What ?