The minister is to be congratulated on his timeousness, given what he said about geological time. Most members feel sometimes that that is what we are living through when we listen to some of the speeches in the chamber—from members of all parties.
Bp Essay Tony Hayward: Strategy bp plc site homepage. Over the last two years BP have closed the competitive gap identified in which has helped restore momentum in the core business.
The company are continuing to build the core capabilities of the workforce and this further compliments the improved performance flowing through the bottom line of the companies strata. As well as delivering a good operational performance over the periods, BP have delivered, through a significant strategic plan which revised some of their less profitable sectors across the company.
On a larger scale, BP performance over he last decade has allowed them to build a portfolio of great quality delivering long sustainability potential equal if not surpassing any in their industry.
In refining and marketing, the company has less overall exposure to refining than peers. With a highgraded portfolio over the past decade, larger and more advantageous refineries than most other super majors puts the company is a good position for further profit growth in the next decade to come.
Looking forward, there is real opportunity to make the new strategy work for investors. While having considerable scope for sector leadership, particularly in costs, capital efficiency and margin quality, the company has reduced expenses through downsizing inincreased profits through further output all the while maintaining a disciplined approach to the environmental effects of profit creation and implemented various schemes in alternative energy, allof which make BP a very invest able venture in the short, medium and long term timeframes.
BP Revenue Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow.
By that logic we look very closely at revenue numbers as our second most important factor in valuing a companys stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years.
For, BP the high and low end of the Price to Sales per share ratios are 0. Notice that BPs current Price to Sales per share ratio is 0.
So, while not a huge positive for our analysis, we do feel it is worth noting that BP does look a bit undervalued on a Price to Sales basis, all other factors being equal.
However, if the Price to Sales ratio drops further, Ockham Research is likely to become more bullish on this stock.
BP Cash Earnings Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. BP is below its historical average multiple of cash earnings as calculated by Ockham.
Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for BP to identify where the current high and low price levels have been historically in relation to profit per share.
Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 8. With a historical average Cash Earnings ratio of 7. Naturally, we would love to see a deeper value opportunity for BP, but to get there one of two things must occur or both.
Either the stock price must decline further to increase the long term buying opportunity, or the management at BP needs to earn more cash.
BP Dividends When determining a companys future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor.
Even though it isnt imperative for BP to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from BP against the historic high and low levels over all available dividend history.
Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from BP over previous years was Management at BP needs to get the current dividend yield above the historical median before we are comfortable from this point of view.
There is now a real opportunity to make this portfolio work harder for us and we intend to do just that. Meanwhile, the company intends to start up a total of 42 new major projects between andwith 24 projects reaching final investment decision in the next two years.
Over the next five years, the company expects a contribution of about 1. Additionally, BP noted that it intends to continue investing in growing a focused portfolio of low-carbon businesses, comprising US onshore wind power, biofuels, solar power and carbon capture and sequestration.
Earlier in the month, BP posted a profit for the fourth quarter, fueled by oil and gas production growth, besides increasing reserves. This expected level of production is in line with the guidance given to analysts in BPs strategy update in March last year.
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