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I thought the staff got around $500m in options this year. That is 0.57%, not the 1.5% being quoted. Does this mean that the rest of the article is also inacurate ?
Its quite strange the buybacks dont seem to be targeted at buying when the price goes down ?
BP are suggesting that they will have a volume increase in 2022 due to fresh projects(oil/gas). I thought I might have heard or read somewhere that this is around 220 000 Boe per day. Thats about $5B ish revenue p.a. and $2B cash. On top of that they are suggesting a cash cost savings of $2.5B p.a. (That might be why they reduced the breakeven point from $45 in Q2 to $40 in Q3 ??). If this is true maybe this can be to reduce their debt.
Good point Bananaman2,
I would add that it does look like it is going to be BP's most profitable year ever.
Better than 2018.
Hi MarkGo,
I tend to agree with what you said. I am hoping that at some point the markets will wake up to the high valuations of some equities and rotate into value. And BP should be down to a trailing PE of around 7 by Q3 results.
High growth/High valuation sectors tend to do better with lower rates so therefore for a share like BP announcing tapering might be a good thing (after a short shock) as it might increase the 10-year yield.
But because something is logical, it doesn’t mean it will happen.
As I understand things based on what they have said about oil price at:
$60 - they pay divi+ increase divi by 4% pa + reduce debt + $1b share BB per quarter
$50 - They pay divi + reduce debt, no increase in divi, no share BB
$40 – they pay divi , they break even
$30 – they pay divi, they increase debt
I think they are around 7% of daily volume across the three exchanges, so they have plenty of scope to buy more.
About 6 weeks of buying left
BP bought lower than usual today. It's like they don’t want to be intrusive in the market
you know that BP 's trailing PE will drop a lot once Q3 is announced. It feels like the company is rated as Junk for equity, but A2 for debt?
Today they should reach the 1% of issued shares bought back YTD. At then end of Q3 they will have bought back 2.25% of their shares.
I could foresee BP having 4 or 5 hydrogen plants by 2035.
Because of the cost and complexity, they have a barrier to entry from competition vs. say solar.
I think the current strategy of going slowly over a 10-year period is correct for the company, perhaps not for the shareholders who want a return immediately, but they get a higher return then the debt holders.
So you don't like them Mojo ?
I think this is really good news for BP.
Does anyone else notice that the oil price seems to rise under democratic Presidents
The biggest thing holding BP and other oil companies back is the future oil price. People want to see if the price stays up or goes down. If the Saudi's and Russians can double their profit’s by holding back 10%.
29 working days
Put it to this way, if I had £48m this is where I would store it.
And obviously good shareholder value for the share buys,
…and it pays 5% divi,
so it feels like it can only provide ( “a little bit at least” ) upside for the next 30 days.
Actually Markgo it is quite a good question, Interesting.
I think they are doing it slowly so as to provide downside protection.