BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.
British Petroleum is one of the largest integrated oil and gas companies in the world. It has operations in some 70 countries world-over and it produces more than 3.6 million BOE (barrel of oil equivalents) per day.
With the dark clouds of falling oil prices and low cash flows slowly clearing from the skies of the oil industry, BP is once again looking like a very attractive investment option.
The reasons behind its re-emergence as a top investment magnet are numerous. Here are a handful of them:
– Its recently reported Q1 2019 results were decent to say the least.
– The current valuation of BP shares is reasonable. The price is less than 11 times the estimated profits of next year.
– BPs recent growth is supported by the strong fundamentals of rebounding oil markets and rising energy prices.
– BP dividends yield some 5.7-6% . The company is indeed the top-performing oil company in this regard.
The upstream operations of British Petroleum consist of oil and BOE production. Its downstream activities are much more diverse, covering the production, distribution and marketing of fuels, lubricants and a wide range of petrochemical products.
What moves the needle on BP stock?
It is clear that the value of BP shares is entirely dependent on oil prices and the overall health of the oil industry.
The revenues of the company are testimony in this regard. In Q3, 2018, BP’s reported net profit was $3.8 billion. During the same period of 2017, its net profits were just $1.87 billion.
What else do you have to know about BP stock?
There are two kinds of BP shares available: ordinary shares and American Depositary Shares. Of these, the former are traded at the London Stock Exchange and the Frankfurt Stock Exchange.
The latter (ADS) are traded at the New York Stock Exchange. A Depositary Share is worth much more than an ordinary one. In fact, ownership of a single Depositary Share translates to the ownership of no fewer than 6 ordinary shares.
Another testimony to the viability of BP stock is the fact that the largest shareholders of the company are some of the most prestigious global institutional investors.
We are talking about the Vanguard Group, State Street Corporation and Barrow Hanley Mewhinney and Strauss, among other similar caliber names.
As mentioned, the dividend yield of BP stock is one of the best in the industry. At around 6%, this yield is only equaled by Royal Dutch Shell, also with 6%. Eni is next on the list with 5.4%, followed by Total with 5.2% and Occidental Petroleum, with 4.22%.
BP owns several large companies. Lubricant producer Castrol has been one of them since 2002. Through Castrol, BP is able to sell its own lubricants at gas stations.
Another BP-owned petroleum company is Aral, the owner of the largest chain of gas stations in Germany.
AMOCO and Wild Bean Cafe (gas station coffee shops) are also BP-owned.
BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.