BP aims to improve City relations with 14 per cent dividend rise
BP's chief executive, Bob Dudley, is expected to increase the oil giant's dividend for the first time since it was reinstated for the end of 2010 after a six-month suspension.
Analysts expect BP to increase its quarterly payout to investors by 1 cent to 8 cents a share when it announces its fourth-quarter results on Tuesday, as Mr Dudley seeks to rebuild relations with the City. This would be barely half the amount BP was paying out before the Gulf of Mexico oil spill, but it is not expected to be its final dividend increase. At its peak, before the spill, BP was the UK's biggest dividend payer, accounting for £1 in every £6 of dividends paid to UK pension funds.
Kim Fustier, an analyst at Credit Suisse, said: "BP should be able to raise its dividend in February [to 8 cents]. However, we see risks that management might wait for a full Macondo resolution [relating to the oil spill] later in 2012 before raising the dividend more substantially."
BP will announce a pre-tax profit of $7.260bn (£4.6bn) for the fourth quarter of 2011 – a jump of 9 per cent on the period a year earlier – according to Deutsche Bank.
This week, a US judge ruled that BP must cover all compensatory damages claims relating to the role played by Halliburton, the group responsible for the cement casing of the failed well.
Justin Bieber was one of the hardest hit
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...
£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...