Is it time for the price of BP shares?

People keep trying to give life to BP (LSE: BP) shares price. The former CEO Bernard Looney tried to turn the green oil giant.

In 2020, BP promised to reduce oil and gas production by an ambitious 40% by 2030. That did not fly. Ended with the actions that are negotiated with a significant discount for pairs such as Shell and Exxonmobil.

Last week, the new Chief Murray Auchincloss made an reverse ferret. Now points to the BP market value in five years when returning to fossil fuels.

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Auchincloss was stimulated by the attention of the Elliott coverage fund, which has built a 5% participation in the Ftse 100 major oil.

The options included stripping the company, Dumping Net Zero, again list in New York and possibly the three and more. Others have discussed a rival link.

All of which keep analysts occupied, but is it just a displacement activity? Should we accept that the price of BP shares simply is not all that?

The numbers tell a gloomy story. The price of the action has fallen 5.4% in the last year and has dropped 20% for two years.

Despite the energy clash of 2022, the current price of 439P leaves it operating at levels similar to a decade ago. At least investors have their dividends.

BP looked good a good month or two, with a price to profits (p/e) of about six. He gave his back, just to discover that the P/E has shot at an amazing 231 times.

On February 14, BP registered a profit of the entire year of only $ 381 million, below $ 15.24 billion in 2023. It had a loss of $ 1.96 billion in the fourth quarter.

At least the dividend still remains. The yield is 5.6% in a basis of purposes and is forecast to reach 6.1% this year. The cover is decent in 1.8.

BP has also been generous with shares. He promised another $ 1.75 billion in the first quarter of 2025. But it seems increasingly that the company will have to borrow to finance them. That is not sustainable.

Just have dividends

The restart of the BP strategy, announced by Auchincloss on February 26, marks a dramatic change. It plans to increase annual oil and gas expense by approximately 20% to $ 10 billion while reducing the investment of renewable energy.

BP also aims to sell $ 20 billion in assets by 2027, including Castrol discharge and its participation in the LightSource BP Solar developer.

He also hopes to reduce the net debt of $ 23 billion to between $ 14 billion and $ 18 billion by the end of 2027. All this will undoubtedly help. But I feel that BP still seems to blow with the wind.

When Net Zero was fashionable, he went along with that. Now we are drilling again, BP returns to oil and gas. That is not a way of executing an oil platform.

At least now he's at home, I guess. But this crisis means one thing. BP cannot afford to sit for longer. As bets increase, someone has to give life to the price of shares.

I hold the stock and I still don't give up. I will simply sit strong and continue to reinvirt my dividends. At some point, all this activity has to lead to something, right?