Monday 5 May 2014

British Petroleum (BP) report Q1 2014

BP, 2014, Q1, report

So a second of my contrarian companies arrived with the Q1 report for 2014 and that was British Petroleum. The stock market became excessively happy and the shares increased with +2.68% on the day of the publishing. However... they tend to cheat and therefore on the same day they arrived with an announcement that said that the dividend would be yet again increased.

The report in full from British Petroleum Q1 2014 and their cheating with trying to make investors happy with increased dividend can for instance be seen here.

I will not say so much about this report to be honest with you. The only thing that I found of importance can be seen in the table below. If we compare the profit for Q1 2013 with Q1 2014 then things are looking very bad. This high profit did however come from the sale of TNK-BP and a normal profit is more around 3 to 6 billion of USD before taxes. This means that they did fairly well in Q1 2014 since we ended up with a profit of almost 6 billion.

British Petroleum, BP, Q1, 2014, Porfit/Loss

What could be seen in another table was however that they profit coming from Rosneft had decreased from Q4. Personally I would have expected it to either increase further or to flatten out. It was really down by -75% from Q4 in 2013. I hope that this is only some temporary setback because I have future high expectations of that BP stepped in so heavily in Rosneft.

Conclusion: I will stay with my shares and collect the very nice dividend that keeps increasing year by year. Now the quarter dividend has jumped up to 9.75 cents which is an increase by over 8% from last year. The report was as very often status quo which is fine by me. For the previous analysis of British Petroleum (BP) 2014 this is the link to use.

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