|Bid||507.10 x 0|
|Ask||507.20 x 0|
|Day's Range||502.50 - 510.50|
|52 Week Range||452.38 - 583.40|
|Beta (3Y Monthly)||0.57|
|PE Ratio (TTM)||21.75|
|Earnings Date||Feb 3, 2020 - Feb 7, 2020|
|Forward Dividend & Yield||0.32 (6.24%)|
|1y Target Est||7.99|
The number of bosses leaving the FTSE 100 reached a record on Thursday after BHP (BHP) announced chief executive Andrew Mackenzie will leave after six years at the helm of the Anglo-Australian miner. A total of 20 bosses from the UK’s blue-chip index of top stocks have been replaced or announced their departures so far this year, according to research by AJ Bell. The same thing is happening across the Atlantic where 172 U.S. chief executives stepped down in October, the highest on record, according to recent research.
Moody's Investors Service ("Moody's") has affirmed Reliance Industries Limited's (RIL) Baa2 domestic long-term issuer rating and foreign currency senior unsecured rating. At the same time, Moody's has affirmed the Baa2 backed domestic currency senior unsecured debt ratings on the USD denominated bonds issued by Reliance Holding USA, Inc., with a guarantee from RIL.
BP (NYSE:BP) stock remains steady as the company transitions to a new CEO. The problem is that has remained too steady.Source: JuliusKielaitis / Shutterstock.com The stock has seen little movement in the nine years Bob Dudley has served as CEO. Mr. Dudley took over in the midst of the Deepwater Horizon oil spill that devastated both the stock and the company dividend. * 7 Tech Stocks to Buy for the Rest of 2019 As leadership transitions to incoming CEO Bernard Looney in February, investors may credit Mr. Dudley with saving the company. However, stockholders have seen almost no profits in that time other than the dividend payments. Now, as new leadership takes over and as BP finally escapes the liabilities of the oil spill, many wonder if they can finally look forward to gains in BP PLC stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Oil Spill Turned BP Into a Dividend StockFor the last few years, BP stock has generated little excitement and considerable dividends. The company paid $3.36 per share in yearly dividends before the oil spill. At the current $2.46 per share in annual payouts, it still has not caught up to that level. However, it has risen steadily since management cut the payout.The company's dividend yield currently stands at an impressive 6.2%. Ian Bezek also makes a great point that shareholders do not pay foreign taxes on dividends from British companies. This is a bonus to holding shares in the company formerly known as British Petroleum.The problem involves a seemingly immovable stock price. BP traded at $38 per share when Bob Dudley took over as CEO in 2010. As Mr. Dudley prepares to step down, the equity trades at around $39.50 as of the time of this writing. For this reason, investors should probably continue to view BP stock primarily as an income play. Here's why. The Case For and Against BP StockNew leadership and the prospects for higher demand beg the question of whether investors need to buy BP stock for gains. In that area, I do not feel so optimistic.Admittedly, BP stock bulls have a reasonable argument. Although profits will fall this year, analysts forecast average annual earnings growth of 31.5% per year over the next five years. If this comes to pass, BP stock will again become a growth play. Moreover, countries such as China and India have an ever-increasing need for oil. The need should increase further once a U.S.-China trade deal becomes a reality.However, investors also have good reason to mistrust such a rosy forecast. Companies such as ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), like BP, have seen profits fall over the last year. So bad is the problem that Chesapeake Energy (NYSE:CHK) now questions its ability to stay in business.West Texas Intermediate crude currently trades at about $57 per share. While most would not consider this "low," oil prices have struggled to gain traction in recent years as production levels in the Permian Basin have kept prices in check.The oil discovery in Iran will probably not help matters. The Iranian government claims it has discovered 53 billion additional barrels of oil. Despite sanctions, this likely helps to keep a lid on prices. When one figures-in the increasing importance of alternative energy, I see little reason to believe demand will rise enough to take the price of BP stock with it. The Bottom Line on BP PLC StockAmid a change in leadership, investors should continue to look at BP stock as an income play. BP should remain a good buy for dividend investors. The $3.05 per share in predicted profits will cover the $2.46 per share in dividends. The question is whether the equity can offer more.BP stock has seen little net price growth in nine years. Moreover, output continues to stay ahead of forecasted demand growth, indicating prices will fall. Despite this, analysts continue to hold to optimistic forecasts of long-term profit growth.Considering these conditions, I recommend BP stock only as a dividend play. I see the prospects for stock gains as mixed, but if they occur, see it as a bonus.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Stocks to Buy for the Rest of 2019 * 7 Biotech Stocks to Buy With Plenty of Power in the Pipeline * 5 Stocks to Buy That Are Set for Monster Growth in 2020 The post Amid Changes, Continue to Treat BP Stock as a Dividend Play appeared first on InvestorPlace.
The oil giant’s attributes and drawbacks mean it should trade at a premium to emerging market competitors but a discount to Western oil companies, Bernstein analysts write.
Moody's Investors Service ("Moody's") has assigned a rating of B2 to the proposed backed senior unsecured notes for up to $120 million due 2023 to be issued by Pan American Energy, S.L., Argentine Branch ("PAE Argentine Branch"), a wholly-owned subsidiary of Pan American Energy, S.L. ("PAE", B2 RUR-). The notes are guaranteed by PAE and rank pari passu with PAE Argentine Branch´s and PAE's other present and future unsecured and unsubordinated debt obligations.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.BP Plc, Royal Dutch Shell Plc, Total SA and Vitol Group are among partners in a new exchange to trade Abu Dhabi’s flagship oil grade in what could become a new price benchmark for a fifth of the world’s crude.Intercontinental Exchange Inc. Chairman Jeffrey Sprecher confirmed the partnerships, speaking on Monday to reporters in Abu Dhabi. Other partners in the exchange are Petrochina Co., Inpex Corp. and JXTG Holdings Inc. of Japan, PTT Pcl of Thailand, and South Korea-based GS Caltex Corp., he said.Although oil producers across the Persian Gulf pump about a fifth of the world’s oil, they have never had a region-wide, exchange-traded crude benchmark. Adnoc wants the Murban futures contract to become a benchmark for crude from the Middle East, the biggest oil-exporting area of the world.Abu Dhabi National Oil Co. will join major international oil companies, traders and customers as founding partners in a platform operated by ICE for the trading of futures contracts in Abu Dhabi’s flagship Murban crude, Adnoc Chief Executive Officer Sultan Al Jaber said in a speech earlier Monday. Murban futures will allow buyers to hedge in the open market, he said.Trading StartThe contracts are likely to begin trading around June, and are set to be the benchmark for other Abu Dhabi grades, Al Jaber said in an interview after ICE’s announcement. ICE will be a majority shareholder in the Abu Dhabi futures exchange, he said.Having a large number of well-known international partners “gives you instant credibility that what we’re doing is the right step forward,” Al Jaber said.ICE plans also to introduce swaps contracts on the Abu Dhabi exchange -- for example, between Murban and North Sea Brent -- to improve liquidity by offering more hedging options. The swaps would start trading at about same time as the Murban futures, Stuart Williams, president of ICE Futures Europe, said in an interview in Abu Dhabi.Murban is Adnoc’s most plentiful grade, at about 1.7 million barrels a day, and accounts for more than half of the crude pumped in the United Arab Emirates. Abu Dhabi holds most of the oil in the U.A.E., the third-largest producer in the Organization of Petroleum Exporting Countries.Crude BenchmarksAbu Dhabi won’t be the first regional producer to offer futures contracts for its crude. Oman and the neighboring U.A.E. emirate of Dubai joined with CME Group Inc. in 2007 to start the Dubai Mercantile Exchange to trade Omani crude futures. Oman, Dubai and Saudi Arabia are the only producers in the Gulf to price off the contract; most of the others base their monthly crude pricing on the Dubai and Oman crude price assessments by S&P Global Inc.’s Platts.There is room for more than one benchmark in the region, and the Oman and Murban markers could act as reference points for different crude grades and qualities, Al Jaber said. Murban is lighter and more sweet, while Oman is heavier and more sour, he said.Murban generally fetches higher prices on global markets and is similar in quality to Brent crude, the international benchmark. Brent futures are traded on the London-based ICE Futures Europe Exchange.To contact the reporters on this story: Anthony DiPaola in Dubai at email@example.com;Javier Blas in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Nayla Razzouk at email@example.com, Bruce Stanley, Amanda JordanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The Limetree Bay Refining project is a bet on demand for low-sulfur fuels to meet a Jan. 1 global mandate for ocean-going vessels cut air pollution. The St. Croix, U.S. Virgin Islands, venture is run by private equity and commodity trading firms with oil major BP Plc providing crude oil and marketing the plant's output. Once restarted, the plant will be able to process up to 210,000 barrels per day of oil, a fraction of the 1,500-acre (607-hectare) plant's peak capacity in the 1970s of 650,000 bpd.
BP is investing 10 million euros in Finnish transportation app Whim as the oil and gas company seeks to expand its role in a future low-carbon world. BP's new technology investments have so far focused on electric vehicle charging platforms such as FreeWire and PowerShare and reduction of emissions from oil and gas drilling. Whim, which is developed by MaaS Global, offers customers a single platform to connect all available transport options in a city from taxis, buses, bikes and rental cars to ride-hailing services and shared e-scooters and e-bikes.
(Bloomberg) -- BP Plc is investing 10 million euros ($11.1 million) in the makers of the app Whim, which allows users to pay a monthly fee to access both public and private transport in their city.The company that owns Whim, MaaS Global, started offering the service in Helsinki in 2017. A study early this year suggested the app’s users in Finland curbed their private car use, turning instead to the taxis, public transport, bicycles and rental vehicles they were able to access for a single flat rate using the service.BP’s investment will give it access to the technology underpinning the service. Like other oil companies heavily reliant on fuel sales, the British oil major is seeking a foothold in businesses that understand changing consumer preferences around mobility.“Whim is super convenient,” said Roy Williamson, vice president for advanced mobility at BP, in a statement. “It takes the hassle out of planning travel, taking on board users’ preferences and connecting and booking their ideal transport choices.”In Helsinki, Whim offers four different “plans” which users can sign up for. The cheapest is a pay-as-you go deal, where the app tells a user the best way to get from one destination to the next using a combination of public and private transit options. The user pays for and collects tickets within the app. In the most expensive option, users pay 499 euros a month for unlimited access to rental cars, taxis, public transport and city bikes.MaaS Global, which stands for “mobility as a service,” has published reports which say creating a single digital plan for all types of transport will be important to cut congested and polluted streets, and foster the shift to automated cars. In the future, private car ownership may fall while software helps people find instant, easy and cheap transit options, according to a report from MaaS in March.In one year, the company said it found its users relied on public transit, cycling and walking more than others in Helsinki. Though it doesn’t track private car rides, “new mobility” options could replace 38% of daily car trips, the report said. Whim is now also available in Birmingham, the U.K. and will soon be available in Vienna and Antwerp. BP’s investment will support expansion plans in Singapore and the U.S., the oil major said in the statement.BP executives have talked and written about the importance of understanding the changing dynamics of transport, which will affect the way customers access BP’s retail stations and demand for its fuel. The company is already the largest investor of electric car charging in the U.K., anticipating rising demand for vehicles without a combustion engine.To contact the reporter on this story: Kelly Gilblom in London at firstname.lastname@example.orgTo contact the editors responsible for this story: James Herron at email@example.com, Helen Robertson, Christopher SellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Saudi Arabia formally began an initial public offering Sunday of a sliver of oil giant Saudi Aramco after years of delay, hoping international and local investors will pay billions of dollars for a stake in the kingdom’s crown jewels.
(Bloomberg) -- Big Oil emerged from the third-quarter earnings season battered and bruised, and in some cases it only had itself to blame.Exxon Mobil Corp. aside, the Western supermajors have made bold proclamations about showering investors with cash as they emerge leaner and meaner from the 2014-2016 oil-price crash. But as darkening economic headwinds and operational deficiencies mounted, investors fretted that their expectations may be too high. Here are five things we learned:1\. Communication BreakdownRoyal Dutch Shell Plc Chief Executive Officer Ben van Beurden made an unplanned intervention midway through his company’s earnings conference call in an attempt to lessen the damage from its warning it may fall short of a share buyback target. The move only invited confusion and the shares slid.Meanwhile, BP Plc backpedaled on Chief Financial Officer Brian Gilvary’s comment that a dividend raise would be premature, clarifying that “no decision has yet been made.” Exxon failed to field a senior executive on its call, a reversal from last year when the oil giant vowed to “increase engagement” with investors.2\. Reality BitesShell positioned itself as the sector’s cash king over the past two years after major projects came on stream and commodity prices rebounded from the crash. But with weaker economic growth threatening oil demand and crude supplies surging, Europe’s biggest oil company warned that it may not finish a $25 billion buyback program by the end of next year as planned.Chevron has made financial discipline the keystone of its investment case with CEO Mike Wirth repeatedly saying “costs always matter.” It had previously warned of rising spending at its giant Tengiz field in Kazakhstan but few expected the estimated development cost to blow out by 25% to $45.2 billion, especially after upstream boss Jay Johnson said the project was making “good progress” in August. “Clearly this is a disappointment,” he said on Friday.3\. High BarExxon, Shell, BP and Total SA all beat earnings estimates but their shares either fell or failed to keep pace with oil prices on the day. That underscores the fact that energy has a high bar to retain and attract investors as short-term commodity price constraints meet long-term uncertainties over the fate of fossil fuels.In the U.S., energy companies make up just 4.3% of the S&P 500 Index, down from nearly 12% a decade ago.4\. Permian PowerOne bright spot for Big Oil is the Permian Basin, which is now the fastest-growing major source of production for both Exxon and Chevron. BP is also gearing up to grow there after its $10.5 billion purchase of BHP Group Ltd.’s assets last year. Once an overlooked backwater, the Permian is now a safe space for America’s oil giants, providing quick, low-cost production.Exxon is looking “very closely” at M&A in the basin and elsewhere, Neil Hansen, head of investor relations, also said Friday. Shell, meanwhile, appears to be cooling on the idea of expanding in the Permian; its CFO said it sees no need to buy a shale company.5\. European DebtPaying down debt is a much larger draw on cash reserves for European companies, especially BP, than for their American rivals. Reducing leverage is BP’s number one priority for extra cash at the moment while Chevron reiterated that dividends are its top consideration. That’s exactly what investors want to hear right now.To contact the reporters on this story: Kevin Crowley in Houston at firstname.lastname@example.org;Kelly Gilblom in London at email@example.comTo contact the editor responsible for this story: Simon Casey at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
More than two years after its building was devastated by floodwaters during Hurricane Harvey in August 2017, BP PLC (NYSE: BP) has completed its redesign of the first floor of its U.S. headquarters in Houston. Water damage from Harvey forced employees who worked in Westlake One — the primary building on BP’s Houston campus — out of the office and into temporary or remote space in the immediate aftermath, but most of them were able to move back to the building in spring 2018, a company spokesman said. Despite the resumption of work from Westlake One, the company was still working on its first floor and lobby until earlier this year, the spokesman said.
Investing.com -- U.S. stock futures were largely higher but within recent ranges early Friday in New York, as a welcome bounce in Chinese factory activity in October ensured a positive tone while traders wait for the all-important U.S. labor market report.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Royal Dutch Shell Plc said the worsening economy could slow the pace of returns to shareholders, overshadowing a strong third-quarter trading performance that yielded bumper profits.While the company comfortably beat even the highest analyst estimate for third-quarter profit, shares dropped the most in almost a month after Chief Executive Officer Ben van Beurden warned of uncertainty around the current pace of share buybacks and reduction in gearing -- Shell’s ratio of debt to equity.It’s a performance that echoes Shell’s closest rival BP Plc, which also posted better-than-expected earnings but disappointed shareholders hoping for a dividend increase. The third quarter was difficult for energy producers, with crude prices sinking over worries about the impact of the U.S.-China trade war while natural gas markets endured a long stretch of oversupply. “The prevailing weak macroeconomic conditions and challenging outlook inevitably create uncertainty about the pace of reducing gearing to 25% and completing the share buyback program within the 2020 timeframe,” van Beurden said in a statement on Thursday.Shell’s B shares fell as much as 3.2% in London, the biggest drop since Oct. 2, and traded 2.6% lower at 2,262.5 pence as of 8:18 a.m. local time.Shell said adjusted net income was $4.77 billion in the quarter, beating the average analyst estimate of $3.92 billion. That compares with profit of $5.62 billion in the same period last year, and improves on a surprisingly weak second quarter. Cash flow from operations including working capital, perhaps the single most important measure for Shell as it aims to distribute $125 billion to shareholders between 2021 and 2025, was $12.25 billion, little changed from a year earlier.“Common sense suggests the balance sheet is much more important than an arbitrary target on the buyback, especially if the company plans to continue the buyback post 2020,” RBC analyst Biraj Borkhataria said in a note. Trading GainsThe company’s downstream division, which includes refining, chemicals and fuel marketing, jumped 51% to $2.57 billion. The company emphasized the positive impact of trading gains, particularly in the market for fuel oil, which has been in flux ahead of the introduction of new rules limiting the sulfur content of shipping fuel.While Shell and its peers are better known for their oil fields, refineries and fuel stations, they also run vast trading operations far larger than independent trading houses like Vitol Group or Glencore Plc. Shell trades about 13 million barrels of oil equivalent a day, nearly double the volume handled by Vitol.Shell’s upstream output fell 2% in the quarter as a result of a hurricane and maintenance, as Shell produced 2.606 million barrels of oil equivalent a day. That doesn’t include production from the integrated gas unit, where output rose 4% to 957,000 barrels of oil equivalent and liquefied natural gas sales volumes increased 9% to 18.9 million tons.Advance WarningThe company had warned in its first ever pre-earnings “quarterly update” that upstream production would probably dip slightly from a year earlier, though the impact of the decline may be offset by a strong performance in its market-leading liquefied natural gas trading business.The company decided to disclose more information before publishing its results following complaints its earnings were too volatile to predict. In the first quarter of 2019, it beat analyst estimates by 14%, then missed them by 28% the following quarter.Shell’s peers also made one-time disclosures this quarter to flag bearish news. BP Plc beat estimates on Tuesday but only after analysts downgraded them by about 35% after the company flagged a $2.61 billion impairment charge. Exxon Mobil Corp., which reports earnings on Friday, said it will take a $400 million to $700 million hit from lower oil prices.\--With assistance from Javier Blas and Christopher Sell.To contact the reporter on this story: Kelly Gilblom in London at email@example.comTo contact the editors responsible for this story: James Herron at firstname.lastname@example.org, Stuart WallaceFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
When an issue this big comes to market, institutions and fund managers make room in their portfolio ahead of the IPO. This means oil names will be a source of shorts in any portfolio.
Investing.com -- Here's a roundup of regulatory news releases from the London Stock Exchange on Thursday, 31st October. Please refresh for updates.
Its shares, however, sank 3.8% after Chief Financial Officer Brian Gilvary indicated in an analyst call that the company could delay a decision on boosting dividends to next year. Investors have been piling pressure on oil companies to increase returns as they successfully slashed costs after years of weak performance in the wake of the 2014 industry downturn. BP shares were up 1% at 1110 GMT.