The problem is though that as o&g companies are so capital intensive profit is not a great way to value the company.
Analysts tend to value o&g companies more on their reserves and net annual cashflows and that's where BPT has a problem.
I agree if you just look at current profits it looks cheap but they have to address their declining reserves which will mean either massive future exploration and development spend or more likely they will have to acquire new assets.
This will need vast capital and will likely require a capital raising and the shorts know that which is why they continue to short the stock.
Substantially higher dividends and share buybacks will not happen in the near term as they need all the cash they can get to rebuild reserves.
The problem is though that as o&g companies are so capital...
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Last
$1.49 |
Change
0.015(1.02%) |
Mkt cap ! $3.399B | |||
| Open | High | Low | Value | Volume |
| $1.48 | $1.51 | $1.47 | $9.879M | 6.634M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 7 | 119980 | $1.49 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.50 | 67389 | 1 |
View Market Depth
| Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
| BPT (ASX) Chart |