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Thread: BP Considering Suspension of Dividends

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    BP Considering Suspension of Dividends

    BP directors will meet on Monday to discuss whether to suspend dividends to shareholders, the BBC has learned.

    Executives will then meet with US President Barack Obama on Wednesday, but no announcement on the payments is expected in the near future.

    BP has been under intense pressure from the US government, which wants BP to use the money to pay for the Gulf of Mexico clean-up.

    Meanwhile, BP's shares closed up 7.2%, recovering losses suffered on Thursday.

    "No announcement is expected for a while, but it is looking more likely that BP will cease paying the 1.8bn of dividends per quarter that it's been delivering to shareholders - until that is it can quantify the final massive bill for the Gulf of Mexico oil debacle and prove to the White House that it can afford those enormous costs," BBC business editor Robert Peston said.
    BBC News - BP board to discuss dividends on Monday

    I'm not understanding this move. Won't withholding dividends encourage even more short selling on BP and decrease investor confidence even more?

    Unless the goal is to sink BP, I don't understand why this is necessary. BP has plenty of assets to handle this crisis, it just needs the understanding of how exactly to plug the hole.

    Somehow I feel this suggestion is being floated around by politicians in a dire attempt to grasp at political straws. "Look! We're doing something! We're punishing BP!"

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    Re: BP Considering Suspension of Dividends

    in effect they are actually driving BP to the wall.
    Think on folks, if BP goes bust who pays for the clean up?
    Who pays compensation (except they will never do that), only one entity after BP that may be capable and that is Obama and his bunch of idiots, so sorry, should have said 'Experts'.

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    Re: BP Considering Suspension of Dividends

    Quote Originally Posted by jujuman13 View Post
    in effect they are actually driving BP to the wall.
    Think on folks, if BP goes bust who pays for the clean up?
    Who pays compensation (except they will never do that), only one entity after BP that may be capable and that is Obama and his bunch of idiots, so sorry, should have said 'Experts'.
    Thankyaverymuch!!!

    The Libbos's hearts are so filled with hate and vengence, not to mention cover love for The Messiah, that they are willing to drive BP into bankruptcy and leave the rest of us with the bill..

    The idiots currently running our government actually want BP to pay their employees that have been laid off, due to the drilling moratorium. How moronic is that? The government puts people out of work, then expects some else to support those unemployed people. How can Libbos sleep at night, going along with this bull****?
    Quote Originally Posted by Top Cat View Post
    At least Bill saved his transgressions for grown women. Not suggesting what he did was OK. But he didn't chase 14 year olds.

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    Re: BP Considering Suspension of Dividends

    Quote Originally Posted by apdst View Post
    Thankyaverymuch!!!

    The Libbos's hearts are so filled with hate and vengence, not to mention cover love for The Messiah, that they are willing to drive BP into bankruptcy and leave the rest of us with the bill..

    The idiots currently running our government actually want BP to pay their employees that have been laid off, due to the drilling moratorium. How moronic is that? The government puts people out of work, then expects some else to support those unemployed people. How can Libbos sleep at night, going along with this bull****?


    You do good satire, Nice job making fun hard right political ideologues.
    We became a great nation not because we are a nation of cynics. We became a great nation because we are a nation of believers - Lindsey Graham

    Quote Originally Posted by Fiddytree View Post
    Uh oh Megyn...your vagina witchcraft is about ready to be exposed.

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    Re: BP Considering Suspension of Dividends

    Quote Originally Posted by Redress View Post


    You do good satire, Nice job making fun hard right political ideologues.
    Sad thing is... he's absolutely serious

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    Re: BP Considering Suspension of Dividends

    Quote Originally Posted by Deputy Fife View Post
    BP directors will meet on Monday to discuss whether to suspend dividends to shareholders, the BBC has learned.

    BBC News - BP board to discuss dividends on Monday

    I'm not understanding this move. Won't withholding dividends encourage even more short selling on BP and decrease investor confidence even more?

    Unless the goal is to sink BP, I don't understand why this is necessary. BP has plenty of assets to handle this crisis, it just needs the understanding of how exactly to plug the hole.
    BP is a large company no doubt, however in terms of liquid assets they do not have the reserve to pay off potential criminal liabilites or even the potential liabilities if they are found to be grossly negligent. It would be a smart move by BP to suspend dividends just to ensure they have as much liquidity as possible.

    Already BP will have problems getting credit from this point on, which will be another concern with their capability to pay, of if they can pay, develop new business.

    BP will probably survive, but it will be very expensive for them to do so. There are a lot of liabilities that we do not even think about at this point. For example, the government can sue BP (and others) to recover lost tax revenue from their own moratorium. That can potentially reach into the hundreds of millions, plus cost of clean up, plus all the liabilities from gross negligance (which they will probably be found guilty of), plus now this talk of making BP pay workers who are out of a job because of the government moratorium. It will be unknown the exact liabilities until the well is capped, because their potential liability is tied to how much oil has leaked. There is the potential for billions upon billions of dollars in liabilities. BP needs to hold the cash for now in my view.

    If I was a shareholder (and had not already dumped) I would be pleased to see them holding this money in an effort to get through this disaster.
    Last edited by NolaMan; 06-11-10 at 09:00 PM.

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    Re: BP Considering Suspension of Dividends

    Suspension of dividends? I am still waiting for them to admit that they suspended their ethics, not to mention their brains.
    The ghost of Jack Kevorkian for President's Physician: 2016

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    Re: BP Considering Suspension of Dividends

    Quote Originally Posted by danarhea View Post
    Suspension of dividends? I am still waiting for them to admit that they suspended their ethics, not to mention their brains.
    Their ethics?

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    Re: BP Considering Suspension of Dividends

    Quote Originally Posted by danarhea View Post
    Suspension of dividends? I am still waiting for them to admit that they suspended their ethics, not to mention their brains.
    Why is your libbo heart so filled with hate?
    We became a great nation not because we are a nation of cynics. We became a great nation because we are a nation of believers - Lindsey Graham

    Quote Originally Posted by Fiddytree View Post
    Uh oh Megyn...your vagina witchcraft is about ready to be exposed.

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    Re: BP Considering Suspension of Dividends

    Quote Originally Posted by Redress View Post


    You do good satire, Nice job making fun hard right political ideologues.
    So, your only retort is a personal attack? Really? From a mod?
    Quote Originally Posted by Top Cat View Post
    At least Bill saved his transgressions for grown women. Not suggesting what he did was OK. But he didn't chase 14 year olds.

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