RE: The price of Brent to me looks20 Aug 2021 14:58
Emerald
The dividends are safe sun $60 and number one priority to maintain. Read the Q&A transcript from Q2 results.
Quote
We have five elements of that framework. Element one is a resilient dividend. This is a resilient dividend, and
importantly, we wish to maintain the balance point of the company at $40 per barrel oil, and this is very, very important to us. We can grow the dividend. We've said that in a $60 world, we have the capacity to grow this dividend by 4% per annum. And of course,
remember that we're doing buybacks, and that is a very important thing. We expect $1
billion dollars per quarter at $60. We were basically retiring 5% of the shares of the
company3
, which makes the dividend growth affordable. So, I think from a financial
framework standpoint, elements one to five remain as is. We have taken the decision to
grow the dividend. We believe that is the right thing to do to reward our shareholders
based on confidence in those three things that I've outlined: the underlying performance
of bp, the strength of the balance sheet, and the outlook for the environment. Murray, is
there anything that you would like to add or correct on that, and then any words that you
want to say about ENI in Angola?
Murray Auchincloss: Nothing to correct. I just emphasise the resilience point. Step one,
inside the financial frame, our priority one is a resilient dividend. And we see the capacity
to grow the dividend per ordinary share by 4%, given the price outlook, given the
performance of the operations, and given the potential share buybacks we've got. So,
maintaining resilience at $40 per barrel oil is what's critical to us.
I recommend reading the full transcript on BP website
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