We have changed our stance to positive on BP plc (BP) based
on its impressive earnings growth of up to 40 percent, dividend increase of
12.5 percent and its current restructuring efforts. Its rising refinery margin,
operational efficiencies, plans to increase investment in its upstream business
segment and high free cash flow growth in the coming years make it a good stock
for value investors. In our opinion, it is expected to increase its production
capacity significantly in the fourth quarter after the completion of its
ongoing maintenance projects and on the expected start-up of its new lucrative
projects. BP has strategically aligned its business operations to cater to the
upcoming oil consumption growth of 0.9 million barrels per day in 2013,
according to a report by U.S Energy Information Administration. Therefore, we
recommend investors to take a long position in the stock.
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