Strong message on dividend preservation. Confident message that a combination of a recovery in oil price over the next few years and a significant drop in industry costs can underpin the current dividend. Prepared to move above top of gearing band (20-30%) for a period if necessary. In Q&A CEO Hayward stated that the dividend is safe even if oil prices were to remain at current levels this time next year.
Remains safe dividend play in uncertain market. No change to our views on BP's portfolio challenges, medium term outlook, financial model or conviction that the dividend is safe in all but a doomsday scenario for the timing of a global economic recovery. For investors looking for safe dividends in an uncertain market BP looks compelling on close to a 10% 2009 prospective yield.
GE has a huge loan portfolio with liabilities which are not known to the investment community. BP has oil and we are still in the era of peak oil and increasing demand from Asia. Witness China taking a large stake in PBR. This is one hell of a buying opportunity.