BP promises more asset sales, dividend payout to ramp up equity return to shareholders
In its recent quarterly report, BP Plc indicated a glowing promise to its shareholders. The report of the world's number five oil company in terms of value showed signs that a return of equity would be evident in spite of the overall financial status of the oil and gas sector.
Capital spending was tightened, retaining at USD24 million to USD25 million up tp 2020. BP's replacement cost net profit was only USD3.692 billion, a significant increase from the company's forecast of USD3.170 billion. Dividends for the current quarter had been raised 5.6% to 9.5 cents.
BP also showed a higher disposal rate, promising to sell USD10 billion worth of assets within a two-year period. The company had already sold assets worth USD38 billion to cover the costs incurred in the 2010 Gulf of Mexico oil spill. BP also won savings of USD400 million from legal defeats incurred in the oil spill accident. The oil company had set aside USD20 billion to cover some legal compensation.