Bp Share Discussion Threads

[younasm] 13/11/2023 10:49

Oil prices might be a few dollars higher..... so OPEC+ will keep the published cuts.

[action] 12/11/2023 13:29

Opec+ meeting on 26th Nov23 . Will they curb production to stop slide in oil prices as oil bulls are abodaning the bullish position.

[scruff1] 12/11/2023 12:52

Would solve the CEO problem. May explain why none been proposed yet !!!

[skinny] 12/11/2023 11:17

The above link clickable -

[veryniceperson] 12/11/2023 11:01

https://www.thisismoney.co.uk/money/markets/article-12737941/Will-Shell-BP-join-forces-oil-mega-merger.html

[pensioeninvestor] 12/11/2023 08:36

Short term I agree that windmills and such is not the way to go. But as a long term investor 30-40 years I am happy that they make the transition now and protect the future of the company.

[action] 10/11/2023 13:29

Plug power down by 37% today. Margin pressure. Bp will go up

[veryniceperson] 10/11/2023 08:41

Shell seems to have got a good one. Perhaps BP can get one. There is not a lot of profit in wind. BP down over half a billion dollars on wind turbines.

[action] 10/11/2023 08:05

Vestas says wind turbines market is maturing. Uk wind turbine projects did not attract any bidder. Oil and gas is here to stay. Bring on 500p+

[hellscream] 10/11/2023 06:30

cant wait till we get our first up day in 2 weeks (im not counting that 1p up)!

a good CEO must be worth like £1-£2.

[gwatson56] 09/11/2023 18:26

Questor note in the Daily Telegraph....

For all the uncertainty over BP’s strategy, we can be confident that share price gains lie ahead

Story by Robert Stephens •

The future is perennially uncertain for every company. Even the most knowledgeable and experienced investors do not know what will ultimately happen to any company’s share price. Even if they argue otherwise. However, there are times where uncertainty is particularly heightened.

Following our analysis of Shell on Tuesday and of Italy’s ENI on Monday, we conclude this week’s short series on oil companies with BP – a business that faces a hugely opaque outlook, largely as a result of its muddled strategy.

In 2020 it announced ambitious plans to turn towards renewables in response to the world’s expected transition to net zero. However, it has since watered down those plans, thanks in part to an elevated oil price as well as an increasingly cautious industry consensus on how quickly net zero can happen and how profitable it can be.

In addition, the company is without a permanent chief executive after Bernard Looney stood down in September. Until a new permanent boss is announced, which appears unlikely in the near term because of the abrupt nature of Looney’s resignation, the future direction of the business seems likely to remain unresolved. Ultimately, though, fossil fuels are widely expected to remain a key part of the world’s energy mix for decades to come. They are therefore likely to deliver high levels of profits and cash flow for energy businesses over the coming years. At the same time, renewables are arguably most accurately described as a potential long-term growth opportunity that does not appear to offer high returns in the short run.

Despite its lack of a clear strategy, BP’s shares have been extremely strong since we tipped them in August 2021. They have soared by 61pc and in doing so have trounced the FTSE 100 index’s paltry 4pc rise over the same period.

Their prospects are aided by a continued low valuation: they trade at about seven times forecast earnings, which suggests a wide margin of safety.

In Questor’s view, this bargain valuation is key to their investment appeal during a highly uncertain period for the business; even though BP’s strategy is likely to be confirmed only once a new management team is in place, its share price fully factors this in. The share price also more than adequately compensates investors for an uncertain outlook for the global economy, whose rate of growth is expected to fall from 3.5pc last year to 3pc this year and 2.9pc in 2024. And, because the full impact of rapid rises in interest rate has yet to be felt owing to the existence of time lags, the prospects for oil and gas prices are highly uncertain.

However, if we assume that interest rates will fall over the next two years as the era of rampant inflation comes to an end, the outlook for the world economy is extremely likely to improve. There are also geopolitical risks that could support fossil fuel prices and BP’s performance over the coming years.

The company’s market value has declined following the recent release of its third-quarter results. Its shares have fallen by 13pc over the past three weeks and could prove volatile over the short run. Although the company reported growth in underlying profits of 27pc compared with the previous quarter, they were 60pc lower than in the same period last year. This was largely due to weak results from gas marketing and trading, which more than offset buoyant refining margins and a strong result from oil trading.

The third-quarter dividend was held at around 6p a share, which means the stock currently yields around 5pc on an annualised basis.

The company also announced a further $1.5bn (£1.22bn) repurchase of its own shares, which is underpinned by continued robust cash flow generation, while net debt fell by nearly 6pc relative to the previous quarter. As a result the company has a relatively modest net gearing ratio of 26pc.

As ever, Questor believes that the best time to buy any high-quality stock is when its market valuation reflects elevated near-term uncertainty. On that basis, BP remains a buy. Its wide margin of safety, solid fundamentals and a growing realisation among investors that fossil fuels can provide generous returns for many years to come mean that further capital gains are ahead.

Questor says: buy

Ticker: BP

Share price at close: 481.05p

[younasm] 09/11/2023 17:27

Not a bad finish, considering dividend is about 6p

[meb123] 09/11/2023 14:45

It's good to have debt in an inflationary environment:)

[daler1966] 09/11/2023 13:25

BP had enough wants to rise

[smurfy2001] 09/11/2023 12:26

That's a great reduction in debt but why not pay off more debt and less buy backs?

[halfpenny] 09/11/2023 12:02

Energy sector looking good as demand increases with Bp levels are a great entry.
level.

BP rapid increase as Winter gets colder BP gets Higher...

[meb123] 09/11/2023 10:36

Thee bearish camps have WTI at $75 for 2024 on average. We are more or less at this level now . Look in the bright side . BP can only go up from here :)

[action] 09/11/2023 07:36

It is exd day. May go down.

[hellscream] 09/11/2023 05:20

im going for 5-10p up today!

[younasm] 08/11/2023 12:44

At this rate, you will be paid to take the crude oil - but you will need to payout to rent a tanker ;-) It will be nice to see inflation in logistics / storage - rates are too cheap this quarter.

[pughman] 08/11/2023 12:32

In 22 there were $11.925bn in buybacks and a $9.2bn reduction in net debt. In the 9 months of 23 there has been to date $4.75bn in buybacks and net debt has increased by $900m. Last year was a one off, with a very strong oil price and off the chart refining margins.

[gwatson56] 08/11/2023 11:24

Also the more BP buys back as the price floats around current levels then the corresponding value of the company falls year on year. Assuming the price remains around the same level with the buybacks staying as is then the value of the company will be sub 80B UKP by spring 2024.