BP raises dividend again in wake of Gulf of Mexico disaster
Oil giant BP hiked its dividend for the second time in six months as it continues to deal with the wake of the 2010 Gulf of Mexico disaster.
Chief executive Bob Dudley once again pledged “increasing distributions to our shareholders” as a reward for backing the oil giant in the wake of the Deepwater Horizon explosion, which killed 11 workers and battered BP’s stock and reputation.
The dividend was increased even though profits in the first three months of 2014 were just $3.53 billion (£2.1 billion) against $16.86 billion in the same period last year.
However, the figure for 2013 was boosted by BP’s $12.5 billion sale of its share in Russian joint venture TNK-BP.
Revenue was also down heavily as a result of the sale, from $107.21 billion to $92.99 billion.
BP was one of the darlings of the City until 2010 because of its large and dependable dividend. But this was suspended in the wake of the giant oil spill, and Dudley has been trying to rebuild the trust of the Square Mile by gradually returning the dividend to something close to its former strength.
Today, the payout was increased by 8.3% to 9.75p for January to March, a move bolstered by news that BP was nearing the completion of an $8 billion share repurchase programme announced last year.
“This is a very solid start to 2014,” said Dudley, who added: “As well as progressive growth in the dividend per share, we expect to use surplus cash to support further distributions through share buybacks or other mechanisms.”
BP yesterday had to reiterate that it was “committed” to Rosneft, the Russian energy group in which it holds a 20% stake as a result of an audacious $27 billion deal in 2012.
The US has placed sanctions on Rosneft president Igor Sechin which could stop Dudley, a US citizen, from dealing with him.
- 1 Toddler throws a tantrum at the White House – in front of Barack Obama
- 2 Irish people are travelling home from all over the world so they can vote to legalise gay marriage
- 3 Picture of couple posing with beached dolphin 'that later died' causes outrage
- 4 16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
- 5 Witch doctor arrested after forcing newborn baby to walk in Indian village
Toddler throws a tantrum at the White House – in front of Barack Obama
Maryland mother found pushing her dead child on a swing in a playground
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
Picture of couple posing with beached dolphin 'that later died' causes outrage
Nicola Sturgeon did want David Cameron to win the general election, report concludes
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
Report finds that Britain's wages are the most unequal in Europe
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...