BP raised its dividend, which it said was proof of its financial health after earnings hits and asset sales due to the Deepwater Horizon disaster. BP still face billions of dollars of lawsuits over the matter which will take years to settle.
The company announced that
With operating cash flow generated by BP in 2011 reaching some $22bn – over 60 per cent higher than in 2010 – (CEO) Dudley confirmed the company’s expectation that net cash flow in 2014, in a $100 oil price environment, would be around 50 per cent higher than in 2011. Half of the additional cash is expected to be used for re-investment and half for other purposes including increased shareholder distributions.
BP today announced a 14 per cent increase in its quarterly dividend – to 8 cents per share for the fourth quarter of 2011 – the first rise since the company resumed paying a dividend a year ago. BP’s underlying replacement cost profit for the quarter rose by 14 per cent on the same period in the previous year.