BP Share Price Market Overview
BP PLC, based in London is among the biggest oil and gas companies which play a leading role in the industry. The company has recently released its Q4 results and the company has made people happy.
In February 2021, the BP company shared its full report for 2020 and the numbers are new hope. On one side, many oil companies have gone into debt due to the COVID-19. But, on the other side, BP PLC company has taken a leap and shown gradual growth.
The earnings of BP PLC were on the positive side but it missed the investors' expectations. The direct hit on the company's revenue was due to the lower production of gas and oil. Talking about the refinery throughput, it was also on the weaker side.
Amid the COVID-19, the total results of the company got dented but some parts performed well in the market. The company's hydrocarbon price BoE and sought a hike of almost 7.81%. But this number is lower than the figures of last year's result.
BP PLC Shares' Dividend Overview:
This quarter, BP received the hydrocarbons price of around $28.49 per BoE and around $3.11 per MBtu for the natural gas. The current value of BP's shares is fluctuating over the range of $259-$260.
As the company is also paying a rewarding dividend of $0.31 per share, it's a good thing for investors. Now, the BP share's yield is around 6.04%. The company is a leading member of the group of seven oil companies. For those who don't know, the seven oil companies are:
- Exxon Mobil
- Royal Dutch Shell
- Total S.E.
- E&P ConocoPhillips
The major reason why the share of BP is stronger than many other companies is a stronghold on oil. The majority of the company's revenue comes from the variety of oil products.
CEO's vision on the future growth of BP PLC's shares
As per the CEO, the company has taken some severe steps to make its fundamentals strong amid the crisis. The BP PLC company has been improvising the strategies to cut the cost, said the CEO.
In April, the company updated its measures to support the cash flow of the BP PLC dealings. This step helps the company to cut down the cost expenditure by around 28%. It's definitely a big step towards saving money amid the crisis.
Making max profits from BP PLC shares
As an investor, BP PLC is an excellent company and the shares will perform well in the upcoming time. As per forex traders and stock traders, the company will go bullish in 2021 and beyond. As the demand will surge in a massive way, the share prices of BP PLC will touch new records.
For making now from this BP's stocks, the right way would be shorting. Many traders say that the BP company is a golden opportunity to make money now. Traders suggest that people should trade short around 30% of their long-term position. This strategy will help them gain more profits in a shorter time from this leading oil company.
Earning revenue and cash freeflow
BP announced its fourth-quarter earnings results on February 2, 2021. As BP released its Q4 revenue and earnings on Feb 2, it rested on the mark of $47.57B and out of which, a major part was oil. The total revenue from the oil products was around $44.79 billion out of $47.57B.
The adjusted profit of BP PLC's share was around $0.03 and it's decent considering the external factors.
The cash flow of BP PLC
Coming to the free cash flow of the company in 2020, the company faced a loss of around $0.43 million. The reasons behind these figures negatively could be many. But the most important reason is the hiked dividend. As the company is paying a good dividend of around $0.315 or $1.26 per ADR, this cash flow is not enough for the company.
But, many experts believe that the company will not cut down the dividends. As of now, the organization has also stopped the activity of buying back its shares. The company has made it very clear that they will not buy back their shares till late 2021.
BP PLC's upstream production
Amid the COVID-19 impact, like any other company, BP's upstream production has come down. The quarterly production of BP PLC's reserve was down by 3.9% and the firm is working over it. The CEO has said that as the demand will surge in the market, they will also pace up the production.
Even today, the prices of natural gas and oil are still on the lower bound as compared to the last year's production. But, as the economies are restarting and a gradual surge in demand, the numbers will improve.
Amid the ongoing COVID-19 pressure, the company sold the liquid on the price tag of $28.48. This figure of BP is lower than the same period of last year. Last year, natural gas' price was $3.12 and now, the prices are hovering around $3.10.
BP PLC's downstream
Coming to the downstream production of the company, the profit got a hit. BP's profit dropped to almost $126M from a whopping $1438M in only a year. The main reason behind his massive fall is poor quality refinery throughput in the EU & the US region.
For Q3, the BP company recorded a poor margin of around $5.9 per barrel in contrast to $12.4 a year ago. Coming to the total throughput drop, it came from 1,847K to 1,628K Bopd.
But, the availability of the refining process saw a hike of around 96% for this quarter. Coming to the sales figures of the company, there is a dip in this department also amid the COVID-19 outbreak. The sales figures are not impressive at this moment as it from 6,263K Bopd to 5,255K Bopd.
The shares will surge amid reducing debts
As of now, the BP company has a debt of around $41.55 billion with a fair value of approximately $38.94 billion. This is a drop of 31.3%, down from 31.1% in the former quarter. The company is working very hard toward reducing the debt as fast as possible.
They introduced a hybrid bond which helped them get a $6.6 billion of divestment. The company is confident enough to reduce the debt to $35 billion in the upcoming time. This will help company shares to grow more in the upcoming time.
BP PLC shares are a very good investment in the long term and this will make you good money. Even in a difficult situation, the BP company showed positive signs of growth. So, in the upcoming time, the growth is there for the company and the share prices will see a good surge. If you plan for trading oil, then you need to pay more focus to technical analysis.
Many experts recommend buying and holding the share of BP PLC as the demand for oil and gas will go on a higher level amid a boom of demands. Whether you are a beginner or an expert, you can diversify your portfolio and include the BP PLC shares.
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