BP May Start Dividend in Early 2011

The new chief executive officer (CEO) of BP plc (BP), Bob Dudley, expects the U.K. oil major to resume its dividend payment (which was suspended in June) early next year following the board meeting scheduled to be held before the end of this year. The news came in only a few hours before Dudley’s joining as the CEO of BP.

Dudley’s comment on dividend had a positive impact on investor sentiment, which helped BP shares to move up nearly 3% yesterday. As suggested by BP’s share price movement, the company’s recent strategic decisions have gradually helped to revamp its position. In the last four weeks, the price of BP ADS rose more than 18%, though still down about 31% since the April 20 accident.

The new CEO stated the need to shift company focus on rebuilding shattered investor confidence in the company. We believe BP is doing well in this direction. Last month, the company joined Marine Well Containment Company (“MWCC”) headed by ExxonMobil Corp. (XOM).

MWCC will accelerate engineering, construction and deployment of equipment designed to improve capabilities that can contain future underwater leakages in the GoM. Additionally, earlier this week, the company also announced the creation of a new unit, which will look after the safety measures of various activities across the departments.

Though concerns remain about BP’s growth prospects due to delays in deepwater GoM projects and limited access at its U.S. acreages, Dudley said the rest of its large global business is performing well.

BP PLC (BP): Free Stock Analysis Report

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