Bp Share Discussion Threads

[hellscream] 20/10/2020 16:40

gas up over 100% in 6 months.

[the stinger] 20/10/2020 15:14

This will be taken over!

[hellscream] 20/10/2020 14:39

cancer deaths up 59% from last year because of lockdowns, why arnt government being made accountable?

[hellscream] 20/10/2020 12:24

oil/gas and ftse all up, why are they still taking from us shareholders?

[slinkyj] 20/10/2020 10:15

Did a day trade on boo today and made packet on the recovery. Saving that for any catastrophic event that may happen here. Hoping it won't but always good to have a some back up buying power

[maqsud] 20/10/2020 08:45

Lot of uncertainty everywhere ...we could be heading for a sharp fall overall globally !Get ready to dump & buy after the event .

[veryniceperson] 20/10/2020 08:37

Below 200 today maybe. You would have thought the company was in dire straights wouldn't you. Are these a bargain at today's prices, yes and tuck them away.

[hellscream] 20/10/2020 08:30

if the results are decent, the CEO should come out now and say it, and anounce the dividend... cant see the shares going up at all until results.

[hellscream] 20/10/2020 08:18

bp holding more cash in hand yet, than the company is worth?
i remembered when they did share buybacks in the £5 range... why not now?

[veryniceperson] 20/10/2020 08:11

Another good start to the day.

[hellscream] 20/10/2020 07:25

4/5 down days follow 1 up day, can the market not be so predictable.
what happened to the odd day where it goes up 20p? like to see some shorts get caught with there pants down.

[sbb1x] 20/10/2020 06:16

Big Oil's huge bet to save itself from extinctionhttps://t.co/4opkAbaORS

[philanderer] 20/10/2020 00:11

BP reportedly to make 7,500 compulsory redundancies

19 Oct 2020

The company’s job cutting programme is expected to reduce its annual cash costs by $2.5bn by the end of 2021

[sbb1x] 19/10/2020 12:52

Government propping up house prices.. is inheritance tax a massive winner for the government because of high houses prices ...

[stockriser] 19/10/2020 09:13

Sbb1x - "Even if they don't increase the 2m barrels in January the oil market is bang in trouble for the next 6 months"

Doesn't the market look 6mths ahead?

[skinny] 19/10/2020 08:51

Actually Brent is up - but so is the £/$.

[ruskie123] 19/10/2020 08:44

TLW flying because of $575m deal leaked late Friday night with French giant Total. Total General Manager in Uganda saying it’s about to close

[oakville] 19/10/2020 07:25

Every time this goes under 2 quid just mop them up. World will still be turning in 3 years.

[hellscream] 19/10/2020 07:22

the only thing that matters in the UK, house prices are up, so sod everything else.

[hellscream] 19/10/2020 07:21

we dont go up when oil is up, so who cares if its down.

[sbb1x] 19/10/2020 06:17

Good morning Brent down 42.85$

[florenceorbis] 19/10/2020 04:03

Does the BP share price make it the best buy in the FTSE 100?

Alan Oscroft | Sunday, 18th October, 2020 |.

What can you say about BP (LSE: BP)? This time last year, I’d have rated the BP share price as one of the most dependable in the FTSE 100. I know oil is politically out of favour, but I’ve always expected it to be with us for many decades yet. And the big oil companies will surely be heading moves away from fossil fuels anyway.

Twelve months ago, BP shares were down over the previous year. From the highs of September 2018, the price had lost close to 15%. It was essentially following a weakening in the oil price. But we’d previously had a bull run, and BP was paying very attractive dividends. That’s all changed now.


BP share price crash

So far in 2020, the BP share price has lost more than half its value. And since those record 2018 levels, it’s down 65%. Today, BP shares have reached their lowest for the entire two decades of the current century. The price was even higher during the oil price crisis, when oil dropped to $25 per barrel. If someone had told you a year ago that this would happen, you’d have laughed at them, right?

The oil price collapsed briefly in the 2020 stock market crash. But it’s recovered since then, and now trades at over $40. On that measure, the BP share price surely deserves to be significantly above its oil crisis levels. Well, the old BP, maybe.
Dividend shock

But we’ve experienced one truly momentous event in 2020, which chilled investors to the bone. BP cut its dividend. Even throughout the earlier oil slump, its CEO at the time, Bob Dudley, calmly assured us the dividend was safe. He appeared totally confident, and that confidence was contagious.

Mr Dudley has retired now, replaced by Bernard Looney. And BP has slashed its dividend in half.

That news came with first-half results in August, the same day the company announced its “New Strategy To Deliver Net Zero Ambition.” The BP share price wavered for a few days, and then dropped like a brick.

The core of the new plan is to aim for a tenfold increase in low-carbon investment by 2030, with a rise of up to eightfold by 2025. And it includes all kinds of reductions: hydrocarbon production down 40% by 2030, emissions from operations down 30%-35%, upstream emissions down 35%-40%, no exploration in new countries… and more.
Buy, sell, or what?

I reckon BP was rather canny in the timing of all of this. I think it would have been a harder sell to institutional investors had it come at a time of medical and economic health. But what should we do now?

BP hasn’t forgotten its investors, at least not according to the new strategy. It intends the rebased dividend to be resilient. And at today’s BP share price, the yield is up around 8%. The company also says it will return at least 60% of surplus cash through buybacks, and aims at “7-9% annual growth in EBIDA per share to 2025.”

Is the new BP a good investment now? With the shares on a P/E of 11 based on 2021 forecasts, and that high rebased dividend yield, I think it could be one of the best buys on the FTSE. Investors might need nerves of steel, though.





Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK