British Petroleum is one of the biggest names in the oil and gas sector. Over the past three years, BP revenues have increased considerably. However, the costs for the company have also been increasing. Over the past two years, the company has suffered deeply due to the Macondo well disaster.
However, BP has raised $35 billion, including $11 billion in the third quarter, by selling assets to meet the obligations of the oil spill. Further, the company has announced an agreement to sell its 50% share in TNK-BP to Rosneft, a Russian integrated oil and gas company. BP will receive $17.1 billion in cash and shares representing 12.84% of Rosneft. After the completion of the transaction, BP will hold 19.75% of Rosneft.
During the third quarter earnings announcement, the company announced a key change in the focus of its operations. Management outlined its plan beyond 2014, turning the focus to exploration and oil from gas and refining business. A shift to exploration and liquids will provide stability in revenues and increased growth opportunities. In addition, the company increased its quarterly dividends to $0.09 per share ($0.54 per ADS).
Based on the current price, dividend yield for BP is 5.2%. Moreover, the stock is trading at a P/E ratio of 7.5, compared to an industry average of 9.6. Recent increase in dividends is an indication that the company is optimistic about the future growth prospects.
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