As a result, Exxon posted its first losses in more than a decade last year and its dividend came under pressure, as the oil major posted a cash flow deficit of $16.2 billion.Īt the same time, Exxon Mobil is one of the greatest beneficiaries from the rally of the oil price this year. In 2020, the pandemic caused a collapse in oil prices, which in turn led to refining and chemicals margins to historic lows.
It produces oil and natural gas at a 60/40 ratio and it is one of the most integrated oil majors, with significant contribution from its refining and chemicals segments. Thanks to the healthy payout ratio of 50% and the favorable price environment, the dividend is safe for the foreseeable future.Įxxon Mobil is the largest oil and gas company by market capitalization. Nevertheless, BP is still offering an attractive 5% dividend yield. It also targets a 10-fold increase in the number of charging points of electric vehicles.īP cut its dividend by 50% last year due to the pandemic. BP now intends to increase its investment in clean energy 10-fold in an effort to increase its renewable energy generating capacity 20-fold over the next decade. Renewable energy is a potential growth catalyst for BP as well. BP tends to outperform the other oil majors during rising oil prices and underperform during falling oil prices because of its high sensitivity to the price of oil and its debt load. Moreover, thanks to the continuing recovery of the energy market, BP is likely to maintain its strong performance in the upcoming quarters. It was one of the company’s most profitable quarters in seven years. On the upside, it more than tripled its earnings per share, from $0.24 to $0.78, thanks to the rally of the oil price and improved refining margins.
In the first quarter, BP reduced its production 22% due to asset sales, the natural decline of its fields and reduced investment amid the pandemic. BP has greatly benefited from this rally. Given also the deep production cuts of OPEC and Russia, the price of oil has rallied to a 3-year high this year. Last year, the oil major came under great pressure due to the coronavirus crisis and the resultant plunge in the price of oil and refining margins.įortunately, the pandemic has begun to subside this year thanks to the massive distribution of vaccines. It operates in two segments: upstream and downstream (mostly refining). BP is one of the largest oil and gas companies in the world.
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