Member Info for Harmonica

WeirdPal,

I suspect that BP retained 35% because nobody was willing to buy 100% of the busness at the sort of money that was being offered for 65% of the business. It is profitable, so 35% will be booked in future and, in the meantime, cash has been generated to pay dividend, buyback share capital, invest in new projects and/or pay down debt.

April 2026.

Presumably, she has to give notice at her current job.

Divis arrived. With HL.

For somebody so keen on stopping wars, I am amazed that the US is potentially flirting with war!

Cunningfox, I just finished reading 'The Lunchtime Trader' by Marcus De Maria. In it, he says that there is investment/trading saying, that bulls walk upstairs (i.e., slowly), but bears throw themselves out of the windows (i.e., quickly).

So your observation is not a unique one!

I see that BATS has fallen over 3.5% as ai type.

Why so?

I note that the fall in the BP share price is greater than the fall in the share price of Shell. This tells me that BP is being looked at especially negatively today.

Could it be the reported Bank of America downgrade?

Market down just over 150 points at around 16:00.

Ho-ho-ho!

Trying to figure out why the market ismso buoyant today?

Might it be because unemployment jumped up UNEXPECTEDLY to 5%, so an interest rate cut from the BoE looks more likely??

I am invested in BP and only four other quoted firms. For the first time in goodness knows how long, ALL five are up simultaneously!

Definitely opposed if given a choice. This is why shareholders can only vote for a cut, bur never for an increase compared to what the directors are proposing.

Anyway, BP could generate cash by sales of parts of the business or stopping share buybacks.

However, as we have just seen from the results, selling oil and gas generates billions of cash.

I suppose that if Russian oil is removed from the market, that would make for less supply. Those that were buying it would have to switch their demand to oil from other sources. Combined, that looks like leading to upward price pressure.

Konan100,

"the way is lost' for whom?

Not for Europe or the USA, who are enjoying watching Russia bogged down, making it less of a threat elsewhere.

We're Europe and/or the USA were to provide missiles for Ukraine, this latter could destroy Russia's oil production for years.

Never Sel Shell,

I think that the article refers to the fact that in selling Castrol, BP plc would receive several billions. The cash inflow would then be available to carry on with buybacks.

Millipede forced to backtrack because the Union bosses have been moaning about the likely loss of jibs for their members.

Labour knows where its money comes from.

Prime time,

Makes one winder how truly effective such strikes have really been?

Also, the buyers of Russian oil may have plenty in reserve and so are not yet obliged to buy from the world markets.

LeeRex,

Whilst what you have written is factually and technically correct that the dividend yield falls as the share price rises, assuming no change in the dividend payout per share, that is only really an issue for those buying BP shares. For those who bought previously, the yield is fixed at the previous rate, whatever the share price does.

As for buybacks...long may they continue to put a floor on the BP share!

For a nice change, whilst Shell was slightly down at the close, BP stayed in positive territory. So, today, BP is nor a dog! Roll on tomorrow.

Charles,

Aiming to eliminate all debt would be beyond madness! It is this debt that enables the company to invest in projects and companies that it might not otherwise be able to afford. This is called leveraging, ie being able to do things that the equity capital alone could not achieve.

Put another way, were it not for this debt capital, BP would either have to accept doing less and thus earning less profits or it would have to keep doing rights issues in order to raise funds to invest from shareholders. This would dilute our shareholding and lower the shares price.

It is dangerous to be over-leverages in that profits in a bad year might not be enough to pay debt interest. However, BP seems to be pretty liquid and could always sell off a unit to generate cash if needs be.