Jump to content

Where to next for BP shares as profits soar to 14-year highs?


Recommended Posts

Despite taking a $24 billion hit for exiting its Russian operations, BP still managed to raise its dividend and initiate a $3.50 billion share buyback programme.

 

 Jeremy Naylor | Writer, London | Publication date: Tuesday 02 August 2022

BP's profits soar as consumers feel the pinch

Oil giant, BP PLC has reported a profit of $8.45 billion - its highest profit line in 14-years. This comes at a time when consumers are feeling the pinch because of a rise in household bills.

Let's take a look at the numbers, which were showing that adjusted net profit came in $8.45 billion. We've been looking for something closer to $6.85 billion, after a figure last year of $2.8 billion.

Two years ago, of course, BP was in the real thick of it in massive losses. But this time, with all this money coming into the sector with high oil prices, BP's been able to increase its dividend by a margin of 10%. We'd been looking for something around about a 4% increase so that was better than expected as well.

Plus, the fact it plans a $3.5 billion share buyback plan indicates that the company thinks its shares remain cheap.

BP share price chart

Let's take a look at the share price chart, because you can see clearly the way in which it's risen since those lows two years ago, all the way down at 180-odd pence a share. Here we are now at 407.7.

We've just peeked above this line of prior resistance, which was established back on the 30th of June, and again you can see here on the 19th of April.

So it's going to be above that, albeit briefly, before a pullback back down to that level at 407.

Where to from here?

Well, obviously, there is an upward movement here. If you're looking at the possible topping out of a line, I think it's best to go with a Fibonacci on from the tops to the lows down there. And you can see that the 61.8% retracement kicks in at 418.9.

So technically, there is still further upside to go - something like around about 10 or 11 pence a share, and then you get into this area of resistance up to 433.1.

A total retracement would take us all the way back up to those highs not seen since the 8th of June 2022. A big question now is whether the oil is going to rise above that? We've seen oil under a little bit of pressure recently but there are a lot of comparisons about the size of these profits and the rate of which household energy bills are rising.

On the negative side, the company also had to take a $24.4 billion hit after ditching its near 20% stake in the Russian oil producer, Rosneft in response to the Ukraine war.

So, BP stock on the way up after earnings this morning.

 

 

 

IG Group.PNG

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      20,129
    • Total Posts
      88,222
    • Total Members
      69,113
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Sherman_Charlie
    Joined 05/10/22 22:47
  • Posts

    • Elliott Wave Analysis TradingLounge Daily Chart, 6 October 2022, Uniswap (UNIUSD) UNIUSD Elliott Wave Technical Analysis Function: Follow trend Mode: Motive Structure: Impulse Position: Wave 2 Direction Next higher Degrees: wave ((3)) of Motive Details: Price tends to trade above 9.817, but must not reverse below 5.552 Wave Cancel invalid Level: 5.552 Uniswap (UNIUSD) Trading Strategy: The price tends to trade above 9.817, but be aware of the important resistance at the MA200 line, if it fails, there is a chance to reverse again. And it could be an opportunity to join the trend. Uniswap (UNIUSD) Technical Indicators: The price is below the MA200, and MASO line. momentum is bearish. Tradinglounge Analyst : Kittiampon Somboonsod Source Tradinglounge.comGet trial here!     Uniswap (UNIUSD) UNIUSD Elliott Wave Technical Analysis 4Hr Chart Function: Follow trend Mode: Motive Structure: Impulse Position: Wave 2 Direction Next higher Degrees: wave ((3)) of Motive Details: Price tends to trade above 9.817, but must not reverse below 5.541 Wave Cancel invalid Level: 5.541 Uniswap (UNIUSD) Trading Strategy:The price tends to trade higher steadily, but the MACD is declining. You may need to be cautious when trading during this period. But even then, Momentum is still positive above the MA200 and MAS50 lines. Uniswap (UNIUSD) Technical Indicators: The price is abovethe MA200, and MASO line. momentum is Bullish.
    • Stock Market SP 500, NASDAQ 100 NDX, Russell 2000 RUT. Dow Jones Industrial (DJI) Elliott Wave Technical Analysis and Trading Strategies. US Markets News Today: OPEC+ Agrees to Biggest Oil Production Cut Since Start of Pandemic/ reduce output by 2 million barrels. Elliott Wave Market Summary: The move upwards is a bear market corrective rally, how far it goes is the question and today I take a look a few possibilities  Elliott Wave count: Tracking two wave counts Day / Trend Trading Strategies: No Strategy Video Chapters 00:00 S&P500  16:15 NASDAQ 100 (NDX) 16:36 Russell 2000 (RUT)  21:45 Dow Jones (DJI) 24:35 End. Thanks for supporting! Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com    
    • Market data to trade on Thursday: Aussie Trade; Levi earnings With the upside risk for forecasts for the Australian trade data, IGTV’s Jeremy Naylor looks at the long trade on the Aussie benchmark, the S&P ASX 200. Earnings out on Thursday include Constellation Brands and Levi Strauss.      
×
×
  • Create New...