LUCAS HERRMAN | DEUTSCHE BANK
Given increased integrity costs and falling revenues our expectation is that margins in the business will have come under some significant pressure, a theme that we suspect will prove recurring throughout the current ‘transition’ year.
Our 575p price target assumes the shares deserve nearer a seven times 2011 multiple.
DOUGIE YOUNGSON | ARBUTHNOT SECURITIES
People are looking for real shareholder return; I certainly don’t see it coming out of BP. They continue to substantially underperform in the peer group and I think that is likely to continue until they do something fundamental... We have said for months now that BP missed a major opportunity at the start of 2011 to do something special at its strategic review.
RICHARD GRIFFITH | EVOLUTION SECURITIES
As BP highlighted in February, 2011 is a recovery year with asset disposals targeting US$30bn aimed at reducing gearing to between 10 and 20 per cent (20 per cent 2Q11). Short term there is a decline in production and increase in costs but from 2012 onwards BP expects to return to growth and see its cash flow growth exceed production growth.