Management wanted to make a point that it was not BP’s first rodeo. Essentially, the company is cutting expenses wherever it can and has around $32bn of liquidity, by securing credit lines and issuing debt. This still does not guarantee the full dividend in 2020, as the elevated gearing and delayed proceeds of the Alaska business dampen the company’s flexibility. We reckon green shoots in Q2 are needed to get the board’s approval next time.
28 Apr 2020
Q1: bracing itself for the crisis
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Q1: bracing itself for the crisis
BP p.l.c. (BP:LON) | 507 -27.4 (-1.1%) | Mkt Cap: 85,329m
- Published:
28 Apr 2020 -
Author:
Kevin VO -
Pages:
3
Management wanted to make a point that it was not BP’s first rodeo. Essentially, the company is cutting expenses wherever it can and has around $32bn of liquidity, by securing credit lines and issuing debt. This still does not guarantee the full dividend in 2020, as the elevated gearing and delayed proceeds of the Alaska business dampen the company’s flexibility. We reckon green shoots in Q2 are needed to get the board’s approval next time.