BP stock is composed of original BP shares as well as shares acquired through mergers with Amoco in 1998 and the Atlantic Richfield Company (ARCO) in 2000.[270][271] The company's shares are primarily traded on the London Stock Exchange, but also listed on the Frankfurt Stock Exchange in Germany. In the United States shares are traded in US$ on the New York Stock Exchange in the form of American depository shares (ADS). One ADS represents six ordinary shares.[272]
Following the United States Federal Trade Commission's approval of the BP-Amoco merger in 1998, Amoco's stock was removed from Standard & Poor's 500 and was merged with BP shares on the London Stock Exchange.[270] The merger with Amoco resulted in a 40% increase in share price by April 1999.[273] However, shares fell nearly 25% by early 2000, when the Federal Trade Commission expressed opposition to BP-Amoco's acquisition of ARCO.[274] The acquisition was ultimately approved in April 2000 increasing stock value 57 cents over the previous year.[271]
After the Texas City Refinery explosion in 2005, stock prices again fell. By January 2007, the explosion, coupled with a pipeline spill in Alaska and production delays in the Gulf of Mexico, left BP's stock down 4.5% from its position prior to the Texas City explosion.[275] However by April 2007, stocks had rebounded 13% erasing the 8.3% loss from 2006.[276] Declining oil prices and concerns over oil sustainability also caused shares to fall in value in late 2008.[277]
The Deepwater Horizon oil spill in April 2010 initiated a sharp decline in share prices, and BP's shares lost roughly 50% of their value in 50 days.[278] BP's shares reached a low of $26.97 per share on 25 June 2010 totalling a $100 billion loss in market value[279] before beginning to climb again. Shares reached a post-spill high of $49.50 in early 2011[280] and as of April 2012 shares remain down approximately 30% from pre-spill levels.[281]
On 22 March 2013, BP announced an $8 billion share repurchase which will be implemented during 12–18 months.[282][283][284] As of April 2013, $300 million was used, with a minimal impact to the share price. The buyback decision followed closure of the TNK-BP deal and it has to offset the dilution to earnings per share following the loss of dividends from TNK-BP.[284] According to the company the buyback would provide shareholders near-term benefits from the reshaping of the company's Russian business.[282] The buyback is also seen as a way to invest excess cash from the TNK-BP deal.[284]
As of 2012, 38% of BP shares were held by American investors, 36% by British investors, and 14% by the rest of Europe with the remaining shares held by investors from other countries.[285] Major institutional shareholders include BlackRock Investment Management (UK) Ltd. (5.39% as of 19 February 2013), Legal & General Investment Management Ltd. (3.82% as of 19 February 2013), and Capital Research & Management Co. (Global Investors)
BP stock is composed of original BP shares as well as shares acquired through mergers with Amoco in 1998 and the Atlantic Richfield Company (ARCO) in 2000.[270][271] The company's shares are primarily traded on the London Stock Exchange, but also listed on the Frankfurt Stock Exchange in Germany. In the United States shares are traded in US$ on the New York Stock Exchange in the form of American depository shares (ADS). One ADS represents six ordinary shares.[272]
Following the United States Federal Trade Commission's approval of the BP-Amoco merger in 1998, Amoco's stock was removed from Standard & Poor's 500 and was merged with BP shares on the London Stock Exchange.[270] The merger with Amoco resulted in a 40% increase in share price by April 1999.[273] However, shares fell nearly 25% by early 2000, when the Federal Trade Commission expressed opposition to BP-Amoco's acquisition of ARCO.[274] The acquisition was ultimately approved in April 2000 increasing stock value 57 cents over the previous year.[271]
After the Texas City Refinery explosion in 2005, stock prices again fell. By January 2007, the explosion, coupled with a pipeline spill in Alaska and production delays in the Gulf of Mexico, left BP's stock down 4.5% from its position prior to the Texas City explosion.[275] However by April 2007, stocks had rebounded 13% erasing the 8.3% loss from 2006.[276] Declining oil prices and concerns over oil sustainability also caused shares to fall in value in late 2008.[277]
The Deepwater Horizon oil spill in April 2010 initiated a sharp decline in share prices, and BP's shares lost roughly 50% of their value in 50 days.[278] BP's shares reached a low of $26.97 per share on 25 June 2010 totalling a $100 billion loss in market value[279] before beginning to climb again. Shares reached a post-spill high of $49.50 in early 2011[280] and as of April 2012 shares remain down approximately 30% from pre-spill levels.[281]
On 22 March 2013, BP announced an $8 billion share repurchase which will be implemented during 12–18 months.[282][283][284] As of April 2013, $300 million was used, with a minimal impact to the share price. The buyback decision followed closure of the TNK-BP deal and it has to offset the dilution to earnings per share following the loss of dividends from TNK-BP.[284] According to the company the buyback would provide shareholders near-term benefits from the reshaping of the company's Russian business.[282] The buyback is also seen as a way to invest excess cash from the TNK-BP deal.[284]
As of 2012, 38% of BP shares were held by American investors, 36% by British investors, and 14% by the rest of Europe with the remaining shares held by investors from other countries.[285] Major institutional shareholders include BlackRock Investment Management (UK) Ltd. (5.39% as of 19 February 2013), Legal & General Investment Management Ltd. (3.82% as of 19 February 2013), and Capital Research & Management Co. (Global Investors)
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