The latest BP figures were clearly a disappointment on several fronts.
The results, coupled with a weak outlook for the third quarter, are likely to see broker forecasts downgraded further as BP continues to struggle.
There was little to inspire any market confidence in its senior management team, who are already under pressure from shareholders to identify a suitable growth strategy.
But near-term resolution of the TNK-BP and Macondo issues are more important in our view than a miss in quarterly earnings because they account for about £31.8billion in aggregate of value.
BP is an important holding for many investors, being a mainstay of unit trusts and pension funds which rely heavily on the dividend payments.
The group confirmed its second-quarter dividend would remain unchanged at eight cents a share; about 5.1p based on current exchange rates. Although increased earlier in the year, BP’s dividend remains well below the levels paid before the Gulf of Mexico disaster.
Even before yesterday’s results, BP was under pressure to do more for shareholders.
If this doesn’t come to fruition, then they may well become a possible target for other “supermajors” with names such as Royal Dutch Shell and ExxonMobil often floated as potential suitors.
Alan MacPhee is investment manager at Brewin Dolphin in Aberdeen