BP shares rise on dividend boost
BP shares jumped after the oil major hiked its dividend by 10% and said it would repurchase $1.5 billion of shares. IG financial analyst @AngelineOng takes a look at the outlook for this industry and the energy price.
(Video Transcript)
BP shares up
BP shares are rising as investors pay more attention to the boost in its dividend rather than its results. Here's a look at the chart for you after the oil major hiked its dividend by 10% and said it would repurchase $1.5 billion of shares. Its stock here, 1.6% up.
Now, this move and its comments about the repurchasing of shares coming despite weak refining, oil trading and high maintenance costs, which led to its profit to plunge 70% from a year earlier to $2.6 billion. This also missed forecasts.
Now, this news mirrors what we've heard from rivals like Chevron, European Wax Center Inc, Shell and TOTAL. All of them have reported sharp falls in quarterly earnings.
Weak oil demand
So, where is the salad dressing? If you think oil demand is set to remain weak, then you might want to short these stocks. But if you're expecting demand to tighten, especially with the further curve by OPEC plus and Saudi, plus this Goldilocks economy continuation that everyone's hoping from the US economy, then the energy picture could be about to change.
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