13:24 24/03/2017 Re: BP dividend warning
This time last year Brent was averaging $34 a barrel, this year it's $54. With a million boe coming on stream over the next 5 years, I guess BP will continue to make sales if necessary to fund the dividend. I wouldn't argue if there was a dividend cut, the payment has been out of synch with profits for years now. If they reduced the current $7.5 bn yearly dividend by a third the shares would still yield 5%. The market may view that as sustainable going forward and rerate the shares upward.
23:27 23/03/2017 Re: BP dividend warning
numberbiter Your post was really garbled thinking in my view. What are these reserves. They were paid out of cash inflows - operating nett cash flows and debt - along with the investments. <.... and as the company is heavily in debt...> You may think it is heavily but it is still well within BP's debt/equity limits. < So, as any dividend will further increase debt; shareholders will, in effect, be paying themselves with their own money.> Even you think they are being payed at least partly by debt - ie borrowed money, Not shareholders cash. I could go on but will let others consider your whole post. Don't get me wrong. I know BP can't continue forever to use more debt to meet divi and investment cash needs. It will eventually meet its self imposed upper debt/equity limit. Remember all companies are wise to use gearing where they get better returns than the interest costs, and BP can. OM
22:47 23/03/2017 Re: EU benefits
"Shareordie, You keep whisling in the dark to keep your spirits up. Keep whistling, you'll need it as reality dawns. Cheers, Frog in a tree" I have to confess that I have made some educated guesses on companies that have profited from the way the EU has been operating in the last few years. I have made money by investing in First property,they have properties in Poland and other EU countries. Also I have made money on Phoenix spree Deutschland because I could see unlimited immigration increases the price of property. Also I have made money by picking up cheap AJ mucklow shares just after the Eu referendum knowing that it was a fleeting knee jerk reaction. So I can keep the lights on no matter what the outcome. I've heard it all before,it's gonna be the end of the world. https://m.youtube.com/watch?v=X0s4vehHxV4
20:34 23/03/2017 Re: BP dividend warning
Les, I think you are right; the dividend will likely be cut. Last year's dividend was paid out of reserves and as the company is heavily in debt the dividend payment increased debt. This year's result is poor; the company just about broke even (there was a very small profit), but cash inflow from operating activities was down from #19.1 billion in 2015 to #10.6 billion. But this was not enough to service the company's needs and net debt increased to #35.5 billion from from #27.2 billion, A further worry is a question mark over the stated sales, because inventory days went from 25 days in 2015 to 39 days in the current accounts. So, as any dividend will further increase debt; shareholders will, in effect, be paying themselves with their own money. Given this, the value of the company must come down as debt increases. The only increase that can be guaranteed here is the CEO's bonus. With the prospect of the oil price not recovering much the prospects are bleak. There are better investment opportunities.
19:30 23/03/2017 Re: Ahoy, Percy knows about
Berks, I can guess what Percy is saying in Italian on the phone. He's having a good laugh about the wassock who takes the Age Concern people to their free meals in the bus and is suffering from delusions of granduer (that is if Percty exists). Why don't you get into CFD's with BP - you are bound to make a shed load. "Shorting a speciality". Not for you matey.
17:11 23/03/2017 Re: BP dividend warning
OM Thanks for that, I am sure Les loves such headlines. Les is your friend from the outcasts sent to the north?
16:48 23/03/2017 Re: BP dividend warning
Les Read your posts more carefully, it was dated April 14, 2016. Thought you might like to know. OM
16:41 23/03/2017 Re: BP awarded blocks in UKCS
For those that like a link http://www.oedigital.com/component/k2/item/14949-statoil-makes-frontier-ukcs-commitment?utm_campaign=Fuel%20For%20Thought&utm_source=hs_email&utm_medium=email&utm_content=49022538&_hsenc=p2ANqtz--bF2srJNVJabRaG2IlRJ8cLmTPK0sGxANpm7DKr4b1D5LSld7c_QVyOeTnob7dY5uDpn9eF6lIvF-6WTA8OOLC7pXXVw&_hsmi=49022538
16:41 23/03/2017 Re: Poor communication from BP
This hardly warrants a response but I will just say: The site does not belong to BP ("Beyond Petroleum") and so this has nothing much to do with them. If you look at the local planning applications you will see that all the relevant permissions are in place with full details of what was there and what is proposed etc. If there is any fault it lies (not surprisingly) with the dim reporter who has not properly researched their article for the local rag and with you for (once again) getting hold of the wrong end of the stick.
16:39 23/03/2017 BP awarded blocks in UKCS
In the Oil & Gas Authority's 29th Offshore Licensing Award BP has been offered blocks 210/4a, 210/5a, 210/5b, 210/9a & 210/10 East of Shetland. Commitment is to explore with options to drill. So BP continues to look for prospects with generally low risk to expand its portfolio. OM
14:45 23/03/2017 Re: Ahoy, Percy knows about
Les Norman, Now which is the more imaginary? 'EU Benefits' or your imaginary friend, Percy ?
14:33 23/03/2017 Re: Ahoy, Percy knows about
shareordie Whatever you may think my friend Percy he is a great guy. If the posters here were in a pub with him, he would buy them all a round of drinks. He would encourage them to divest their shares in BP and invest their money in his two companies, That is how I've made a few quid in the past.. The other thing about Percy is he is so easy to get on with, the only time I've seen him angry is when someone makes a racist joke, which proves what a high moral character he has. As for his buddies, I have no direct connection with them, they are I think Italian as he speaks to them on the phone in fluent Italian. I can't understand Italian so have no idea as to what they discuss, but whatever it is, it sure makes him a lot of money, that's for sure. Les (Berkeley) - having Norman friends helps ones wealth.
14:27 23/03/2017 Re: EU benefits
Frog, Quite correct. The Civitas report isn't anything new... they've been saying the same thing for well over a year... nor does that point make it wrong though. There are a whole raft of reasons why some non-EU countries like Brazil have grown exports faster to the single market than the UK. It's like comparing apples to oranges if you don't analyse all the reasons why that is the case for each country and take those reasons into account too.... the world is a changing place.... it really is no surprise at all... and it doesn't follow that therefore the UK would be better off outside the EU. Anyone believing that that leaving the EU without a preferential trading agreement wouldn't damage UK GDP is delusional and as mentioned many times.... the UK financial services industry needs to retain access to EU markets for UK businesses... we have a surplus in those services and they contribute a lot to UK GDP. Retention of passporting in particular is going to be a very tricky negotiation you'd expect. Then... of course... there's the Leave Team's main Pledge to be honoured... the NHS is going to get another #350 million a week; that needs to be taken into account too.
14:22 23/03/2017 Re: Berks are you shorting again?.
xTitanic One option but prefer shorting. It is important for the investors here to realise that shorting or using CFD's is for the professionals only, one reason why I don't go into too much detail as to my profits, don't want to encourage amateurs into this strategy because they wouldn't know how to assess stop losses, and their temptation would be to run losses instead of taking the hit when needed. Also they don't do anywhere near the amount of research required to trade profitably. Les (Berkeley) - shorting a speciality
14:13 23/03/2017 BP dividend warning
Writing is on the wall, folks, this can only be a prelude to dividend reducing and you know what that means. big players will sell , looking for bigger and more reliable dividends. This is the type of news which helps to explain why BP's share price is on the way down . http://economictimes.indiatimes.com/industry/indl-goods/svs/petrochem/fuel-prices-british-petroleum-says-dividend-payouts-no-longer-a-priority/articleshow/51827217.cms