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verbal said:
RKH have done an issue of new shares (£48m worth) to institutional investors at 280p. The price won't drop below 270p between now and when the rig returns.

Desire could release news about the Liz well test results which could boost RKH and if FOGL hit oil that will definitely boost RKH.
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I'd be more than happy to get back in at 280 - 290 with almost double my initial investment, but we shall see :)
 
Nothing wrong with the rig, but it's shared out between a few companies over there so they have to each wait there turn to drill, which slows things down a bit
 
robgmun said:
Nothing wrong with the rig, but it's shared out between a few companies over there so they have to each wait there turn to drill, which slows things down a bit
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Ahhh! Ok, have they established how much Oil there is to be had from the field? When will thr rig return? Probability of shares falling through floor / skyrocketing? Guess this is depandant on the well found?
 
Simon said:
BP cuts dividend until 2011.
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No suprise there, just the details were in question...

Is it postponed (ie the money is being put to one side), cut by x% for 2 quarters, or cancelled for 2 quarters?

What is a surprise is the directors allowing the idle speculation to drag on. The idea of the company going bankrupt is laughable given the profit generation, but I struggle to believe that no news is good news in this market, and the BoD have a responsibility to come up with a calming statement to avoid the decimation of value, and the levels of volatility not normally associated with an income stock.

AFAIAA the question of how the company plans to continue to invest, cover a dividend that ISTR needed borrowings to be covered recently (now a more expensive option since Fitch went to town on the credit rating), while setting aside ~$20billion remains unanswered.

The Chairman and CEO have been disappointing imo.
 
The agreement is reasonable. The spread of the $20bn is so great that it will have massively reduced impact on BP moving forwards. The dividend cut will afford them much more capital than their liabilities.

Following a meeting with the President of the United States, the BP Board announces an agreed package of measures to meet its obligations as a responsible party arising from the Deepwater Horizon spill.

Agreement was reached to create a $20bn claims fund over the next three and a half years on the following basis:

* BP will initially make payments of $3bn in Q3 of 2010 and $2bn in Q4 of 2010. These will be followed by a payment of $1.25bn per quarter until a total of $20bn has been paid in.

* While the fund is building, BP's commitments will be assured by the setting aside of U.S. assets with a value of $20bn. The intention is that this level of assets will decline as cash contributions are made to the fund.

* The fund will be available to satisfy legitimate claims including natural resource damages and state and local response costs. Fines and penalties will be excluded from the fund and paid separately. Payments from the fund will be made as they are adjudicated, whether by the Independent Claims Facility (ICF) referred to below, or by a court, or as agreed by BP.

* The ICF will be administered by Ken Feinberg. The ICF will adjudicate on all Oil Pollution Act and tort claims excluding all federal and state claims.

* Any money left in the fund once all legitimate claims have been resolved and paid will revert to BP.


The fund does not represent a cap on BP liabilities, but will be available to satisfy legitimate claims. Further and more detailed terms regarding the establishment and operation of the claims fund and the ICF will be finalized and announced as soon as possible.

As a consequence of this agreement, the BP Board has reviewed its dividend policy. Notwithstanding BP's strong financial and asset position, the current circumstances require the Board to be prudent and it has therefore decided to cancel the previously declared first quarter dividend scheduled for payment on 21st June, and that no interim dividends will be declared in respect of the second and third quarters of 2010.

The Board remains strongly committed to the payment of future dividends and delivering long term value to shareholders. The Board will consider resumption of dividend payments in 2011 at the time of issuance of the fourth quarter 2010 results, by which time it expects to have a clearer picture of the longer term impact of the Deepwater Horizon incident.

The Board believes that it is right and prudent to take a conservative financial position given the current uncertainty over the extent and timing of costs and liabilities relating to the spill. BP's businesses continue to perform well, with cash flows from operations expected to exceed $30bn in 2010 at current prices and margins before taking into consideration costs related to the Deepwater Horizon spill. BP's gearing level remains at the bottom of its targeted band of 20-30 per cent. In addition, the Company has over $10bn of committed banking facilities. To further increase the Company's available cash resources, the Board intends to implement a significant reduction in organic capital spending and to increase planned divestments to approximately $10bn over the next twelve months.

Chairman Carl-Henric Svanberg said: "We appreciated the constructive meeting conducted by the President and his senior advisers and are confident that the agreement announced today will provide greater comfort to the citizens of the Gulf coast and greater clarity to BP and its shareholders. We welcome the administration's statements acknowledging that BP is a strong company and that the administration has no interest in undermining the financial stability of BP. This agreement is a very significant step in clarifying and confirming our commitment to meet our obligations. We regret the cancellation and suspension of the dividends, but we concluded it was in the best interests of the Company and its shareholders."

Chief Executive Tony Hayward said: "From the outset we have said that we fully accepted our obligations as a responsible party. This agreement reaffirms our commitment to do the right thing. The President made it clear and we agree that our top priority is to contain the spill, clean up the oil and mitigate the damage to the Gulf coast community. We will not rest until the job is done."
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Lack of divi and people holding out for one could sell up, suppose it depends how many sell.

Its not like the fund has a 20bn cap, the total cost could still roll onto whatever.
 
Simon said:
US went up 5% initially before closing 2% up - no massive sell off. I think that already happened

The measures annouced have at least got rid of uncertainty in the market
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I note the $20bn fund does not include fines etc. If they are found to have been negligent, the fines could be enormous. The market is guessing at the scale of the leak (another thing that has been allowed to spiral out of control), and the scale of fine per barrel. It'd be interesting to know how credible those leaked e-mails were...

Will income funds look to ditch a stock that will not pay out for at least 9 months, rather than offer the six month 'IOU' that was mooted?

One thing that I keep reading in The Telegraph, particularly Questor, is that companies that invest during a downturn tend to come out stronger the other side. This investment is now being cut.

Still like shooting fish in a barrel for the shorters imo. I wouldn't be suprised to see the 52wk low of 295p tested again.

That said, I thought BP was cheap the 580p I sold at last year, and even cheaper at the 480p I bought at last year. I kicked myself for missing 420p when it took off on fears of being oversold, and thought 365p was ridiculously cheap. Now that I think 340p is the wrong time to get in, it stands to reason that this is the bottom of the market, and you should get em while you can! :rolleyes: :D

Who was it that said that there are those that don't know, and those that don't know that they don't know?
 
Over Clocker said:
BP trading up between 6 - 8% this morning. People liked the news then I guess. Still a long road up however.......!
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I listen to quite a few financial podcasts from the USA and there is a lot of talk about a whole host of big businesses claiming from BP.

Property developers are saying their houses & apartments aren't selling because of this incident, and that retail parks are struggling because of it. Hotel owners are saying bookings are way down because of it. The web of interconnected businesses and livelihoods along that coast is all looking for a payout.

The fact that there is no real financial recovery on Main Street is neither here nor there. So what if things would have been almost equally bad without the incident? The BP incident has come along to give anyone with problems the perfect excuse to put in a claim. And some of these could be absolutely massive. 20 billion is probably just the start.

This may well be priced in. But these are the same technicians who thought everything was fine in early 2007. I trust nobody these days. :-)

Andrew McP
 
The 20 billion will cover that, I think people lose perspective with such a large amount. That sort of amount can fix famine for multiple third world countries...

The only thing that should rock SP now are the fines, which fall outside of the agreement. If negligence is found then I would expect a drop, but with the morning's rises people will expect this to be the bottom and start buying in again for the long term.
 
This shareprice.co.uk app dont half rape your battery if you hit the power button rather than home after looking at it :eek:

The phone turns into a handwarmer too
 
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