I thought I saw around 2m barrels per day. I wasnt sure if that was oil or oil & gas.
My advice is don’t invest in a company if you are not convinced
If you go back 12 months they seem to have issue about $500m worth of shares
TinkerT,
Looney refered to $1B buy back per quarter aiming for around 4%.
If only we could see the future....
Ed,
financials, energy, industrials and materials are positively correlated with rising interest rates. Have a look at what the rising nominal yield in Q1 2021 did to energy.
If the rise is orderly, I think we get sector rotation and the market stays where it is. If it is disorderly, I think everything goes down.
Just my opinion.
You too
Hi Markgo,
what they pay their staff (Bonus, incentive schemes etc… in cash) is not relevant to how many shares are in circulation. It is the same as saying “the share buy backs are largely offset by office depreciation costs”.
What is relevant is that the number of shares is coming down by the amount of the buybacks.
As at the 1st of April BP’s shares (Excluding held in treasury) were 20,347,938,910 shares. As at the 1st September it was 20,128,764,976 shares. During the period they bought back 234,196,252 shares, leaving a net difference of 15M shares (Probably issued)
This means in the 6 months period they issued 0.073% of the total shares to staff. Hardly the 1.5% mentioned in a previous article. That means a 4-5% BB p.a. will at some point make a difference.
and gas at $4 +
Oil at $70 - $80 will do the job.
If you double the risk, you have to double the return.
So if you are setting up a drilling operation, and you have to recover the investment in 5 years then the cost of capital has doubled and a lot of potential oil has been taken off the market.
If you think about this as an investment at £3 vs an investment at £5, you draw different conclusions.
Because governments in their infinite wisdom have ‘called’ the lifespan of the oil industry, a capital-intensive industry is being starved of financing which will compensate through price. This benefits larger companies as they are not as reliant on financing.
And it might be that governments are not so infinite in their wisdom.
Higher interest rates are good for the energy sector as money should move from growth to value
the incremental gas price vs Q2 should improve profit and cash by about $800m Q3 vs Q2 from gas alone.
Good luck to you Zac,
Oil is at good prices Natural Gas seems quite good ATM.
Bye
Between 2020Q2 and 2021Q1 there was an increase of 80 000 000 shares. I know this might have been an exceptional period, but it is unlikely that the number was 350 000 000 in perviouse years.
these are the top 4, now I know this goes throughout the company, but am more likely to believe $500M then $1.5B
From their 2020 report and accounts
2018-20 performance share plan outcomes (audited)
Shares awarded Shares vesting including dividendsValue of vested shares, Feb/Mar 2021Impact of share pricechangea
Bernard Looney 158,690b 126,134 £350,652 -£228,991
Murray Auchinclossc 77,958b 62,124 $275,934 -$111,497
Bob Dudleyc 1,395,600 410,922 $1,566,298 -$962,923
Brian Gilvary 696,705 227,337 £618,357 -£430,217
Hi Markgo,
I assumed that what was being said in the article is that share based incentive schemes in BP are at $1.5B ish pr annum. I don’t have time to go through the annual accounts but that would be surprisingly high. I assume that BP are paying their staff(Overall package) market rates for the industry. Is his/her point that BP are paying their staff to much? This is inconsistent with them making redundancies. I might be proved wrong, but I think the person is talking claptrap.