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Share Name Share Symbol Market Type Share ISIN Share Description
British Petroleum LSE:BP. London Ordinary Share GB0007980591 $0.25
  Price Change % Change Share Price Shares Traded Last Trade
  -5.70p -1.11% 509.10p 39,009,718 16:35:22
Bid Price Offer Price High Price Low Price Open Price
509.80p 510.10p 517.40p 508.90p 509.30p
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 181,084.00 5,315.94 12.73 37.7 101,606.2

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23/10/201814:52Could BP be heading for 350p?67
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BP Daily Update: British Petroleum is listed in the Oil & Gas Producers sector of the London Stock Exchange with ticker BP.. The last closing price for BP was 514.80p.
British Petroleum has a 4 week average price of 500.10p and a 12 week average price of 500.10p.
The 1 year high share price is 603.20p while the 1 year low share price is currently 452.50p.
There are currently 19,958,001,728 shares in issue and the average daily traded volume is 46,927,065 shares. The market capitalisation of British Petroleum is £101,606,186,797.25.
waldron: Where next for BP plc, Tullow Oil plc, Premier Oil PLC and Royal Dutch Shell Plc? Do these oil shares offer recovery potential? BP plc (LON:BP) (BP.L), Tullow Oil plc (LON:TLW) (TLW.L), Premier Oil PLC (LON:PMO) (PMO.L) and Royal Dutch Shell Plc (LON:RDSB) (RDSB.L) November 29, 2018 Robert Stephens FTSE 100 Royal Dutch Shell Plc Royal Dutch Shell Plc With the oil price having fallen by 33% in the last two months, I’m considering the investment prospects of BP plc (LON:BP) (BP.L), Tullow Oil plc (LON:TLW) (TLW.L), Premier Oil PLC (LON:PMO) (PMO.L) and Royal Dutch Shell Plc (LON:RDSB) (RDSB.L). Could they offer improving outlooks? BP’s share price has fallen by around 12% since early October. I wouldn’t be surprised if there is further volatility ahead for the FTSE 100 oil major. The sanctions waivers on Iran put in place by the US may mean that supply growth is stronger than previously expected, and may lead to continued weakness in the oil price in the near term. BP, though, seems to have an improving asset base in my opinion. It continues to invest in its operations, while the recent acquisition of BHP’s petroleum assets may boost its long-term growth potential. Premier Oil may also experience share price volatility. Fears surrounding the world economy and its growth rate may lead to uncertainty among investors with regard to the oil price. The company, though, seems to be making progress in maintaining cost discipline as well as ramping-up production. Trading on a P/E ratio of around 5 using current year EPS forecasts suggests to me that Premier Oil could offer a margin of safety. Tullow Oil is also ramping-up production, and this could create a business with less debt. In the long run, this may allow it to better cope with the volatility of the oil and gas industry. The company is also investing in its exploration activities. This could offer a growth catalyst in future years. A P/E ratio of around 10 and a forecast rise in EPS next year suggest to me that Tullow Oil may be undervalued, but could experience further volatility in the near term. Shell’s asset disposal programme could help to reduce its debt levels while allowing it to focus on core assets. This may lead to a stronger and more flexible business which is better able to overcome the inherent risks of the oil and gas industry. With Shell having a dividend yield of almost 6%, I think it could offer good value for money. In the long run, there is no guarantee that the sanctions waivers on Iran will continue, which means I remain optimistic about the prospect of a recovery for the oil price. But in the meantime, further volatility could be ahead. About Robert Stephens 4992 Articles Robert Stephens is a CFA Charterholder and an Equity Analyst by trade. He is a passionate private investor who has been buying and selling shares for many years, owning a wide range of UK shares in the process. He has written for Citywire and The Motley Fool US and now runs his own business. To contact Robert, please email or use one of the other contact methods available on the 'Contact Us' page
waldron: Are share price gains ahead for BP plc, Tullow Oil plc, Royal Dutch Shell Plc and Premier Oil PLC? Do these stocks offer upside potential? BP plc (LON:BP) (BP.L), Tullow Oil plc (LON:TLW) (TLW.L), Royal Dutch Shell Plc (LON:RDSB) (RDSB.L) and Premier Oil PLC (LON:PMO) (PMO.L) October 31, 2018 Robert Stephens FTSE 100 Royal Dutch Shell Plc Royal Dutch Shell Plc The outlook for oil and gas shares such as BP plc (LON:BP) (BP.L), Tullow Oil plc (LON:TLW) (TLW.L), Royal Dutch Shell Plc (LON:RDSB) (RDSB.L) and Premier Oil PLC (LON:PMO) (PMO.L) could be relatively volatile in my view. Fears of a global economic slowdown could cause their share prices to come under pressure in the short run. BP, though, could deliver improving share price performance in the long run. The company’s recent update showed that its profitability is moving higher, while further investment in its asset base could create a stronger business over the coming years. With dividends rising and the stock yielding over 5%, I think the company could have improving income investing appeal. With a P/E ratio of around 13, I feel that BP could be undervalued at the moment. Shell’s financial prospects appear to be improving. The company’s investment in its asset base could prove to be a sound move, while a focus on deleveraging could create a stronger business in the long run. With Shell’s free cash flow forecast to improve over the next couple of years, I think the company could offer a rising dividend. On a yield of around 5.5%, I think the stock could offer good value for money versus the wider FTSE 100. Tullow Oil’s strategy of ramping-up production could begin to pay off. The company is due to record a double-digit rise in EPS next year, and yet it trades on a P/E ratio of around 10. This suggests to me that the stock could be undervalued. With Tullow Oil set to reduce debt levels over the medium term, I’m optimistic about its prospects in the coming years. While potentially volatile, its improving financial prospects and exploration potential make me upbeat about its capital growth outlook. Premier Oil has focused on reducing costs and increasing production. This is set to lead to improving free cash flow, which could help to reduce debt levels. While potentially volatile and risky, I feel that Premier Oil could offer a margin of safety. It has a P/E ratio of around 6 using next year’s EPS figure, which indicates to me that it may offer upside potential. About Robert Stephens 4720 Articles Robert Stephens is a CFA Charterholder and an Equity Analyst by trade. He is a passionate private investor who has been buying and selling shares for many years, owning a wide range of UK shares in the process. He has written for Citywire and The Motley Fool US and now runs his own business. To contact Robert, please email or use one of the other contact methods available on the 'Contact Us' page
sarkasm: Is the BP share price a ‘buy’ right now? Rupert Hargreaves | Monday, 22nd October, 2018 | More on: BP ENQ Image source: Getty Images. Over the past few weeks, as volatility has gripped the FTSE 100, shares in oil giant BP (LSE: BP) have remained surprisingly resilient. The stock has only declined by 2.4%, excluding dividends, since mid-July, compared to a decline of 7.8% for the FTSE 100 over the same period. In my view, this resilience shows that BP remains an investor favourite, and could be a great addition to your portfolio if you’re looking for stocks to protect your money from market volatility. Profits recovering Following years of cost-cutting, BP is now a leaner operation than ever before, which bodes well for investors. Indeed, shareholders are already reaping the benefits of the company’s leaner operating structure as the price of oil hovers near a multi-year high. Last year, the company became the first of the Big Oil group to re-introduce share buybacks. Most eliminated these efforts to return cash to investors when the price of oil started to decline in 2014. I’m expecting BP to ramp-up its cash return plans over the next six months as the firm’s bottom line gets a boost from the rising price of oil. On top of the buybacks, investors are entitled to a market-beating 5.6% dividend yield. The shares are hardly expensive either, changing hands for just 11.6 times forward earnings. With higher cash returns on the cards, I rate BP a ‘buy’ right now. High risk, high reward If BP is one of the FTSE 100 most trusted dividend stocks, at the other end of the spectrum is small-cap oil producer Enquest (LSE: ENQ), which has endured a mixed record of growth. For the past few years, the company has been struggling under a mountain of debt, built up when the price of oil was trading above $100 a barrel. Management has pulled out all of the stops to keep the business alive and, so far, these efforts seem to be paying off. The rising price of oil has helped, but cost reductions have done the bulk of the heavy lifting, putting Enquest back on a stable footing. Management is now so confident that the company’s recovery is on-track that it’s started chasing growth again. The group recently exercised an option with BP to expand its ownership of the jointly-owned Magnus field and associated infrastructure and the Thistle and Deveron fields. This deal will give the firm an estimated additional 60m barrels of reserves for a total cost of £106m, funded by way of a rights issue. As it continues its recovery, I view Enquest as a binary investment. The company will either make a full recovery or fail. I think the former is more likely, and the subsequent stock price recovery could produce tremendous gains for investors. For example, right now the stock is trading at a forward P/E of just 2.4 that’s compared to the sector average of 8.2. These figures tell me that if Enquest can convince investors its recovery is the real deal, there could be an upside of 240% or more on offer here. The reward is certainly worth the extra risk in my view. Getting Rich Slowly It's easy to make a million by using a simple strategy such as tracking the FTSE 100 and letting your money work for you. Unfortunately, most investors 'over-trade' and, as a result, their returns suffer significantly... To help you avoid this key mistake, the Motley Fool has put together this free report entitled "The Worst Mistakes Investors Make". These mistakes can cost you thousands over your investing career but the best part is, this report is free to download. Click here to get your copy today. Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
the grumpy old men: 4 surprising dividend growth shares? AstraZeneca plc, Barclays PLC, Glencore PLC and BP plc Do these stocks offer upbeat dividend growth outlooks? AstraZeneca plc (LON:AZN) (AZN.L), Barclays PLC (LON:BARC) (BARC.L), Glencore PLC (LON:GLEN) (GLEN.L) and BP plc (LON:BP) (BP.L) September 26, 2018 Robert Stephens FTSE 100 Barclays Barclays The dividend growth outlooks of AstraZeneca plc (LON:AZN) (AZN.L), Barclays PLC (LON:BARC) (BARC.L), Glencore PLC (LON:GLEN) (GLEN.L) and BP plc (LON:BP) (BP.L) could be relatively strong in my view. After a number of years without rising dividends, AstraZeneca is expected to increase shareholder payments in the next financial year. The company’s investment in its pipeline looks set to pay off, with EPS growth of 12% in 2019 being forecast by the stock market. With the company having an increasingly strong position in a number of key markets, its long-term outlook appears to be improving. A dividend yield of 3.7% may not be the highest in the FTSE 100, but AstraZeneca’s dividend growth potential seems to be high. After freezing its dividend in the last couple of years to focus on rebuilding its balance sheet, Barclays is expected to deliver strong dividend growth over the next two years. In fact, by 2019 its dividend payments are forecast to be around 170% higher than they were in 2017. This puts the stock on a forward yield of 4.5%, and suggests that Barclays could be a surprise income option in the long run. Glencore’s share price performance has been relatively disappointing of late. Regulatory concerns and a stronger dollar have caused investor sentiment to come under a degree of pressure. This means that the mining company now has a dividend yield of around 5%. In my view, this provides it with income investing appeal. Clearly, it is a relatively risky and volatile stock which lacks the resilience of some of its FTSE 100 peers. But with a P/E ratio of 9, I feel that Glencore’s risk to reward ratio is relatively appealing. BP’s financial prospects have improved significantly in recent months. A rising oil price means that the company’s EPS growth is expected to positive, although its dividend yield still stands at over 5% in spite of a share price increase. With the BP share price having a P/E ratio of around 13, I feel that it offers good value for money. Since I believe that the oil price could move higher, the stock could deliver improving dividend growth over the medium term. About Robert Stephens 4396 Articles Robert Stephens is a CFA Charterholder and an Equity Analyst by trade. He is a passionate private investor who has been buying and selling shares for many years, owning a wide range of UK shares in the process. He has written for Citywire and The Motley Fool US and now runs his own business. To contact Robert, please email or use one of the other contact methods available on the 'Contact Us' page
grupo guitarlumber: Aug 22, 2018, 06:26am Five Reasons To Be Bullish About Investing In BP Gaurav Sharma Gaurav Sharma Contributor i I cover commodities, mostly oil & gas, often debunking risk premiums. The recently concluded earnings season turned out to be mixed bag for oil and gas majors, with one notable exception – BP (LON:BP). The company delivered a sterling set of quarterly results and has been unveiling a series of eye-catching announcements for much of the current calendar year. The developments give existing and potential investors much to be positive about. Towards the second quarter of 2017, BP was among my stock picks as a nailed-on 'buy' with a 12-month U.K. share price target of 550p. Over the stated period, the company not only outperformed its peers and but beat also the price target with time to spare. Relatively higher oil prices and increased output helped BP quadruple its second quarter underlying replacement cost profit, the company's definition of net income, to $2.8 billion up from $0.7 billion over the same quarter last year, as revealed in July. There are many reasons to be optimistic about investing in BP (Photo: Andrew Yates /AFP/Getty Images) Based on public statements, portfolio optimization efforts and developments at the oil major, I maintain that 'buy' sentiment and believe BP is well poised to match or cap a share price level of 650p over the next 12 months. Here are five reasons to be bullish: Production uptick and the U.S. 'Shale Gale' ride BP's output in the first six months of 2018 came in at 3.662 million barrels of oil equivalent per day (boepd), up from 3.544 million (boepd) over the same period a year ago. The company shows clear signs of moving onward and upward. MORE FROM FORBES Eidoo BrandVoice The Importance Of Being Trustless: Eidoo's Hybrid Exchange NVIDIA BrandVoice Prescribing Deep Learning in Healthcare Civic Nation BrandVoice Students Helping Students To Alleviate The Hidden Costs Of College On July 27, BP revealed it is buying $10.5 billion worth of U.S. shale assets from BHP Billiton, the blue chip miner that's had a troubling time managing them since purchase back in 2011. The acquisition is BP's biggest since 1999. In pure barrels of oil equivalent terms, the acquisition will increase BP's U.S. onshore oil and gas resources by 57%. That would be 190,000 boepd in additional output; split as 90,000 boepd from the Eagle Ford, 60,000 boepd from Haynesville and last but not the least 40,000 boepd from the Permian. The acquisition is a massive impact statement from BP as all three plays point to a quicker monetization of barrels compared to conventional offshore oil and gas plays that take years to yield. Furthermore, make no mistake; BP can most certainly manage the assets way better than BHP Billiton did. Moving on from Deepwater Horizon litigation Even though it is still paying the $65 billion bill in clean-up and penalty costs resulting from the disaster, market consensus and vibes from BP suggest the company is putting the troubles of the 2010 Deepwater Horizon accident and the Gulf of Mexico oil spill behind it. BP (LON:BP) share price trajectory for 12 months to August 2018.BBC The saga weighed on the company for nearly five financial years, causing divestments across the board, as it attempted to get a handle on things. However, since the start of 2016, many in the investor community view the oil major to be growing in confidence in its ability to manage and put the fallout behind it. Putting a figure on it, based on the conjecture of rating agencies and market projections, BP's spill damages are likely to fall from an average of $7 to 8 billion per year to less than $1 billion from 2020-21. If that turns out to be the case, BP's free cash-flow (FCF) exceeds this. Upstream portfolio optimisation Back in July, commenting on his company's U.S. shale move, BP Chief Executive Bob Dudley described it as "a transformational acquisition" and "world class addition" to the company's portfolio. That portfolio has become among the best in the oil and gas business in recent years, with the oil major proving itself to be deft at shifting and bagging upstream assets. View of BP's Khazzan project site in Oman.BP Plc Buying shale assets, divesting in Alaska, going big on natural gas, remaining a key participant in Gulf of Mexico oil block auctions, cutting operations in the North Sea yet revealing two new finds in the mature prospect – BP has seen and done it all. The company was also deemed to have had "best-in-class" lifting costs in 2017, according global analysis and advisory firm Rystad Energy. For instance, BP's $6 billion investment in the Khazzan Phase 1 and Makarem projects in Oman highlighted its "execution excellence" by achieving greenfield costs below $5 per barrel of oil equivalent. With upstream on the up, as a sweetener for shareholders, BP lifted its dividend by 2.5% in the second quarter. It is the first such increase since 2014, offering a higher yield (of 5.44%) and better cash returns. New ventures, innovation and downstream fine-tuning Alongside signature moves in upstream, sit strategic low carbon and downstream overtures. Back in February, at the time of the publication of its 2017 annual results that pointed to a 24% annualized uptick in downstream profits, BP's Chief Scientist Dr Angela Strank told me the oil major is playing a "longer wavelength game" underpinned by emerging technologies, scientific agility and a robust downstream portfolio. "In recent times we have divested a number of refineries, but our current focus is on eight refineries around the world that are really world class in terms of their operations and complexity. We've improved the reliability of our assets, and turned around our petrochemicals business to be resilient at any point in the cycle which maybe it wasn’t in the past," she added. BP petrol station near Mexico city, part of its expansion strategy for fuel retail sales in emerging markets. (Photo: Ronaldo Schemidt/AFP/Getty Images) The company has strategically entered retail fuel markets in Mexico and China. Efforts also range from creating biosynthetic lubricants (Castrol Edge) to more efficient fuels (BP Ultimate), digital apps for aviation support like FlyVictor and RocketRoute to Tricoya, a consortium project that facilitates acetylation of wood chips for use in the fabrication of panel products such as medium density fibreboard and particle-boards. Its venture Lightsource BP, in which the company has a 43% stake and is already the largest developer and operator of utility-scale solar projects, is looking to spread its wings to India's renewable energy market. In June, BP bought Chargemaster, the UK's top electric vehicle charging firm. CEO's commitment to lower break-even The company's moves are accompanied by prudent management coming straight from the top. If the Deepwater Horizon disaster was the trigger for a lower break-even, the oil price slump of 2015-16 served as a catalyst. BP Chief Executive Bob Dudley was the first of the big oil bosses to declare his aspiration for a $30 per barrel break-even, although several of his peers have since followed suit. Last year, at the World Petroleum Congress in Istanbul, Turkey, Dudley told me that he felt the age of $100 oil prices was an aberration, and that BP would be aiming to lower its break-even first to $50, then to the $35-40 range, and ultimately to $30 by 2021. BP Chief Executive Bob Dudley has made clear his desire for a lower break-even. (Photo: BP Plc)BP Plc Investors should take comfort as the top man is so vocal about an optimized portfolio and a lower break-even. In Dudley, BP has a boss who not only steadied a rocky ship but has also turned it around. The company continues to show impressive financial resilience under his leadership. The various downstream and upstream overtures, especially the $10.5 billion mammoth shale acquisition, are likely to result in a marginal increase of its gearing, or debt-to-capital, ratio. However, this will "remain" within the company’s 20% to 30% target range, according to BP. Of course, the oil major's shares trade in near tight correlation with oil (and gas) prices and in some ways present a similar level of volatility. But crude oil benchmarks have oscillated within a predictable $60-80 per barrel range for a while now, and BP, for me at least, represents the corporate turnaround story of the past few years. By that argument, I consider it to be a long-term addition to any investment portfolio. Disclaimer: The above commentary is meant to stimulate discussion based on the author's opinion and analysis. It is not solicitation, recommendation or investment advice to trade the aforementioned company’s shares, and/or oil and gas futures, options or products. Oil and gas markets can be highly volatile and opinions in the sector may change instantaneously and without notice. The author is an oil & gas analyst and market commentator. Follow him on Twitter @The_Oilholic FORBES
the grumpy old men: 16 August 2018 BP p.l.c. Second quarter interim dividend for 2018 Scrip Dividend Programme On 26 July 2018, the Directors of BP p.l.c. announced that the interim dividend for the second quarter 2018 would be US$0.1025 per ordinary share (US$0.615 per ADS) (see RNS Number: 9448V). This interim dividend is to be paid on 21 September 2018 to shareholders on the share register on 10 August 2018. The dividend is payable in cash in sterling to holders of ordinary shares and in US dollars to holders of ADSs. A scrip dividend alternative will be made available for this dividend allowing shareholders to elect to receive their dividend in the form of new ordinary shares and ADS holders in the form of new ADSs. The 'Reference Share Price' for the issue of new ordinary shares under the scrip dividend alternative is: US$7.099 for each new ordinary share. For holders of ordinary shares this is equivalent to 1 new share for approximately every 69.259 shares held prior to the ex-dividend date of 9 August 2018. The Reference Share Price is the average of the US dollar equivalent of the closing mid price quotation for a BP ordinary share on the London Stock Exchange Daily Official List for the five consecutive dealing days beginning on the ex-dividend date of 9 August 2018. The US dollar equivalent price each day is calculated from the sterling closing mid price using an exchange rate published in the London Stock Exchange Daily Official List. The 'Reference ADS Price' for the issue of new ADSs under the scrip dividend alternative is: US$42.644 for each new ADS. For holders of ADSs this is equivalent to 1 new ADS for approximately every 69.340 ADSs held prior to the ex-dividend date of 9 August 2018. The Reference ADS Price is calculated by multiplying the Reference Share Price by six (as there are six ordinary shares underlying each ADS) and adjusting for the fee payable to the Depositary under the ADS Deposit Agreement (US$0.05 per ADS). Prior to the 2012 first quarter dividend payment stamp duty reserve tax ("SDRT") of 1.5% was deducted from this calculation, but following a tax tribunal decision in 2012, HM Revenue & Customs will no longer seek to impose 1.5% SDRT on issues of UK shares and securities to non-EU clearance services and depositary receipt systems. Dividends payable in cash in sterling on 21 September 2018 will be converted from US dollars at the average of the market exchange rates for the four dealing days from 5 to 10 September 2018. The sterling cash dividend will be announced to the London Stock Exchange on 11 September 2018. The latest date for receipt of elections to participate in the Scrip Dividend Programme for this interim dividend is 4 September 2018. Shareholders must return their mandate form or otherwise input their CREST elections, to be received by BP's Registrar, Link, by 5.00 pm (London time) on 4 September 2018, and ADS holders must return their election form to the Depositary, JPMorgan Chase Bank N.A., by 5.00 pm (New York time) on that date. Elections received after this deadline will apply to subsequent dividends only. Unless revoked by you, your scrip dividend election will apply for all future dividends for which a scrip dividend is offered. Evergreen elections for CREST shareholders will not be accepted and elections will revert to cash by default after the payment of each dividend. Details of the second quarter 2018 dividend and timetable are available at and details of the Scrip Dividend Programme are available at This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact or visit END DIVFQLFFVVFEBBF (END) Dow Jones Newswires August 16, 2018 07:54 ET (11:54 GMT)
tewkesbury: Powerhouse Energy (PHE) possible 2000 bagger: englishlongbow 25 May '18 - 10:49 - 6554 of 6556 Keith Allaun says PHE could be a FTSE 100 company based on their UK rollout plans i.e. at least 300p share price; and they are expecting 2.5x more rollout in the EU, and roll out in other geographies like Australia, Far East, Midddle East, etc. So in terms of the share price: 300p for the UK + 750p for the EU + more elsewhere, gives an eventual share price well over 1000p (£10) making it a 2000+ bagger from here. £1000 investment now could be worth £2 million in future. That is a mind boggling return on investment.
ariane: Why I’d avoid this dividend stock and buy 6% yielder BP plc instead Roland Head | Tuesday, 20th March, 2018 | More on: BP WG Image source: Getty Images. I believe it’s time for investors to get choosy about dividend stocks. With the FTSE 100 trading at the lowest levels since December 2016, there’s plenty of choice for income hunters. A quick review of the big-cap index shows around 40 stocks with a forecast yield of at least 4%. If you expand your search to include the FTSE 250 as well, that number rises to about 100. Today I’m looking at two dividend stocks I’d like to own at the right price. A mixed picture In my opinion, energy services firm John Wood Group (LSE: WG) — now known as ‘Wood’ — is a good company. But last year’s £2.2bn acquisition of rival Amec Foster Wheeler will take a while to digest. The Wood share price was down by 5% at the time of writing, after the firm’s 2017 results revealed a full-year loss of $30m, thanks to $165m of one-off costs. These figures show that the group’s pro forma revenue — adjusted to include Amec Foster Wheeler for comparison purposes — fell by 12% to $9,882m last year. Proforma adjusted operating profit fell by 11% to $598m. Adjusted operating margin was unchanged at 6%. Looking at the actual figures, Wood ended last year with adjusted earnings of 53.3 cents per share, 16.8% lower than in 2016. Despite this, the dividend was increased by 3% to 34.3 cents per share. Too soon to buy? I’m confident that as the oil and gas market recovery continues, earnings will improve. I’m also fairly comfortable that the group’s management will do a decent job of integrating Amec Foster Wheeler, which is expected generate cost savings of $170m over three years. However, the Amec deal has left the combined group with net debt of $1,646.1m. This equates to 2.4 times earnings before interest, tax, depreciation and amortisation (EBITDA). The company aims to reduce this to between 0.5x and 1.5x EBITDA “within approximately 18 months”. I believe this could be challenging. Earnings are expected to rise by 16% this year, putting the shares on a forecast P/E of 13.5 with a prospective yield of 3.7%. This could be good entry point. But with debt reduction a priority, I don’t think there’s any rush. I’d watch for opportunities to buy below 600p. Why I’d snap up this 6% yield Services companies like Wood have yet to see the full benefit of the oil market recovery. But producers such as BP (LSE: BP) are already one step ahead. They’ve cut costs and are enjoying surging profits thanks to higher oil prices. BP’s underlying earnings are expected to rise by 40% to $0.44 per share this year. This should provide additional support for the dividend and enable the group to start reducing its debt levels. Forecast dividend cover of 1.1x earnings is still slim, but it means the payout will be covered by earnings for the first time since 2015. I believe that hitting this milestone means the dividend should be safe for the foreseeable future. The $0.40 per share payout could even start to rise over the next few years. BP’s share price has fallen by nearly 15% since January. Trading on a 2018 forecast P/E of 15 with a prospective yield of 6.1%, I rate the stock as a strong buy for income. Buy-And-Hold Investing Our top analysts have highlighted five shares in the FTSE 100 in our special free report "5 Shares To Retire On". To find out the names of the shares and the reasons behind their inclusion, simply click here to view it immediately with no obligations whatsoever! Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended BP. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
the grumpy old men: Better Buy: ConocoPhillips vs. BP These oil industry titans have a lot in common. Which is most likely to outperform? John Bromels (TMFTruth2Power) Jan 4, 2018 at 2:16PM As 2018 begins, the oil and gas industry seems to be caught in an upward trend for a change. Oil prices are rising, and so are company share prices. Take, for instance, British oil major BP (NYSE:BP) and U.S. independent producer ConocoPhillips (NYSE:COP). Both have seen double-digit share price increases in the past year, with BP and Conoco both higher by about 12%. The companies' managements have high hopes for 2018. Let's compare these companies on three metrics to try to determine which is the better buy heading into the new year. A row of pump-style oil wells in a desert landscape BP and Conoco shares have been outperforming the S&P for the past six months. Is this the start of a trend? Image source: Getty Images. Dividend: more than yield A dividend is an important piece of the value equation for an oil and gas company, and luckily for investors, both BP and Conoco reward shareholders through dividends. But BP's yield is fully three times what Conoco is yielding: 5.7%, to Conoco's 1.9%. Both yields have dropped a bit as the companies' stock prices have risen, but that's still a huge difference. It's not all about current yield, though. A company's payout history is important, too, and both of these companies have slashed their dividends in recent memory. BP, of course, was forced to cut its payout in the wake of the Deepwater Horizon oil spill in the Gulf of Mexico in 2010. ConocoPhillips cut its dividend by nearly two-thirds more recently, in 2015 as a result of the oil price slump. So neither company is a stranger to a cut, and both have had a spotty history in recent quarters as far as dividend coverage is concerned. Given these similarities, the superiority of BP's yield has to carry the day. Winner: BP. Returns: an unfair advantage Metrics such as return on capital employed (ROCE), return on invested capital (ROIC), and return on equity (ROE) measure how successful a company's management has been in deploying investors' cash. And in all three of these metrics, you'll notice something very different about BP's numbers vs. Conoco's: Metric BP Conoco ROCE 3.8% (3.6%) ROIC 2.4% (4.2%) ROE 4% (7.4%) Data source: YCharts. All figures on a trailing-12-month basis. Chart by author. BP's return metrics are all positive, while Conoco's returns are all negative. That would seem to indicate that BP's management has been doing a far better job of managing the company's capital than Conoco's has. But those numbers don't tell the whole story. As an independent oil and gas exploration and production company, Conoco's business was hit particularly hard by the oil price downturn. While the larger BP had a profitable downstream refining and marketing business to help buoy the company's finances, Conoco did not. So while both companies' returns have taken a hit since 2014, Conoco's were hit far harder. Both companies have improved their returns since mid-2016, but Conoco has had a deeper hole to climb out of. In other words, this may say less about Conoco's management than it does about the inherent strength of diversification at BP. Still, whether it's coming from better management, a better business model, or luck of the draw, BP still comes out ahead in this category. Winner: BP. Powered By Plans: what to expect Past returns and current yield can only tell us so much, though. Investors should also consider what these companies are planning for the future. Conoco is definitely looking to turn the page on an unprofitable couple of years. The company has made big strides since 2015 to right its business model, selling off underperforming Canadian assets and introducing a shareholder-friendly business plan. It's hoping to grow its dividend, buy back shares, and continue reducing its debt. Those plans have already been rewarded, as the market has bid up the company's stock by about 25% in the past six months alone. But BP has big plans, too, recently announcing plans to restart its share-buyback program, making it the first of the oil majors to do so. It's seeing big production gains from some major projects it began in 2017, including big gas projects in Egypt and offshore Trinidad, which should also pay off for investors. This one's a tough call, but I'm going to give it to Conoco because of the level of detail in its plan. Winner: ConocoPhillips. A lopsided contest BP has by far the better dividend yield and return metrics, and a comparable plan to reward shareholders in the future. And while it's tough to compare the companies' valuations because of recent gaps in positive quarterly earnings or positive quarterly free cash flow, BP's enterprise value-to-EBITDA ratio -- another valuation metric -- is more favorable than Conoco's on both a forward and trailing basis. In light of all that, BP is clearly the better buy right now. That said, it's entirely possible that Conoco will flawlessly execute its plan while BP stumbles. And, of course, there's always the possibility that some unforeseen event -- a la Deepwater Horizon -- could come along and derail either company. Oil and gas investors should keep an eye on both companies, but for those buying in now, BP looks like the best bet.
BP share price data is direct from the London Stock Exchange
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