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BP. 4th Quarter Results

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idpickering
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BP. 4th Quarter Results

#198975

Postby idpickering » February 5th, 2019, 7:08 am

More than double full-year earnings, near double returns

- Underlying replacement cost profit for full year 2018 was $12.7 billion, more than double that reported for 2017. The fourth quarter result was $3.5 billion, driven by the strong operating performance across all business segments.

- Return on average capital employed was 11.2% compared to 5.8% in 2017.

- Operating cash flow, excluding Gulf of Mexico oil spill payments, for full year 2018 was $26.1 billion, including a $2.6 billion working capital build (after adjusting for inventory holding losses). This compares with $24.1 billion for 2017, which included a working capital release of $2.6 billion.

- Gulf of Mexico oil spill payments in 2018 totalled $3.2 billion on a post-tax basis.

- Total divestments and other proceeds in 2018 were $3.5 billion. BP intends to complete more than $10 billion divestments over the next two years, which includes plans announced following the BHP transaction.

- Dividend of 10.25 cents a share announced for the fourth quarter, 2.5% higher than a year earlier.

• Record Upstream reliability, record refining throughput

And this;

Dividend

BP today announced a quarterly dividend of 10.25 cents per ordinary share ($0.615 per ADS), which is expected to be paid on 29 March 2019. The corresponding amount in sterling will be announced on 18 March 2019. See page 25 for further information.

Which is this bit;

Dividends payable

BP today announced an interim dividend of 10.25 cents per ordinary share which is expected to be paid on 29 March 2019 to ordinary shareholders and American Depositary Share (ADS) holders on the register on 15 February 2019. The corresponding amount in sterling is due to be announced on 18 March 2019, calculated based on the average of the market exchange rates for the four dealing days commencing on 12 March 2019. Holders of ADSs are expected to receive $0.615 per ADS (less applicable fees). A scrip dividend alternative is available, allowing shareholders to elect to receive their dividend in the form of new ordinary shares and ADS holders in the form of new ADSs. Details of the fourth quarter dividend and timetable are available at bp.com/dividends and details of the scrip dividend programme are available at bp.com/scrip.




https://www.investegate.co.uk/bp-plc--b ... 00050431P/

pyad
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Re: BP. 4th Quarter Results

#198992

Postby pyad » February 5th, 2019, 9:12 am

This makes a total 18 div of 40.5¢ against 40.0¢ for 17, a small rise of 1.25%. My conservative forecast for 19 assumes they maintain the 10.25¢ per quarter for a total of 41.0¢ and making a further small rise of 1.23%.

They actually raised the quarterly div by 2.5% from 10.00 to 10.25¢ during 18 but because this did not result in the full accounting year of 18 at the new rate, in fact two at the old and two at the new, the effect is to spread the increase over the two accounting years of 18 and 19.

But even this modest increase is better than rival Shell which has frozen its div at 188¢ for a number of years now.

My forecast 41.0¢ is worth 31.4p at the current FX rate for a 19 forward yield of 5.8% at 540p and is an HYP buy in my view. Also, it makes a good multiple choice oil sector pairing with RDSB on a similar yield, despite the latter's big freeze.

idpickering
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Re: BP. 4th Quarter Results

#199005

Postby idpickering » February 5th, 2019, 9:47 am

Thanks for your everwelcome input Stephen. I hold both of them, with a slight capital value weighting towards RDSB.

Ian.

GoSeigen
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Re: BP. 4th Quarter Results

#199006

Postby GoSeigen » February 5th, 2019, 9:51 am

pyad wrote:This makes a total 18 div of 40.5¢ against 40.0¢ for 17, a small rise of 1.25%. My conservative forecast for 19 assumes they maintain the 10.25¢ per quarter for a total of 41.0¢ and making a further small rise of 1.23%.

They actually raised the quarterly div by 2.5% from 10.00 to 10.25¢ during 18 but because this did not result in the full accounting year of 18 at the new rate, in fact two at the old and two at the new, the effect is to spread the increase over the two accounting years of 18 and 19.

But even this modest increase is better than rival Shell which has frozen its div at 188¢ for a number of years now.

My forecast 41.0¢ is worth 31.4p at the current FX rate for a 19 forward yield of 5.8% at 540p and is an HYP buy in my view. Also, it makes a good multiple choice oil sector pairing with RDSB on a similar yield, despite the latter's big freeze.


BP have been repurchasing shares in the market. I guess the above figures are unadjusted for purchases? Worth bearing in mind that part of the dividend "increases" are a natural consequence of this shrinking capital base.

GS

idpickering
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Re: BP. 4th Quarter Results

#199057

Postby idpickering » February 5th, 2019, 1:15 pm

This from TMF;

Here’s why the BP share price is flying today

Shares in FTSE 100 giant BP (LSE: BP) were on the front foot this morning as the company overcame concerns relating to the recent reversal of the oil price and reported a rise in underlying replacement cost profit (the industry’s preferred measure).

Coming in at $3.48bn for Q4, this was down from the $3.84bn achieved in Q3 but still 66% ahead of the $2.1bn reported at the same time in the previous financial year.

This brings underlying replacement cost profit for the whole of 2018 to $12.7bn — over double what was achieved in 2017 and far more than analysts were expecting.

At 11.2%, the company’s return on average capital employed — a measure used in the oil industry to gauge how much profit a company is making compared to the investment it makes in itself — also compared favourably to the 5.8% recorded in 2017. In other words, BP has very much succeeded in squeezing more profit out of its assets in the last year.

Like industry peer Royal Dutch Shell, the oil major also revealed that operating cash flow had increased in 2018 — up 8% to $26.1bn, although this does exclude the $3.2bn in payments relating to the Gulf of Mexico disaster. In line with its strategy of becoming a more streamlined beast, total divestments came to $3.5bn last year with another $10bn planned for the next two years.

Commenting on today’s numbers, Group CEO Bob Dudley said that the company now had “a powerful track record of safe and reliable performance, efficient execution and capital discipline“. This had been achieved, he added, while “bringing more high-quality projects online, expanding marketing in the Downstream” and (with reference to its recent deal to buy onshore US oil and natural gas assets from the miner) “doing transformative deals such as BHP.“


https://www.fool.co.uk/investing/2019/0 ... ing-today/


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