Understanding Aker BP ASA's Upcoming Dividend Payout
Aker BP ASA (AKRBY, Financial) recently announced a dividend of $0.3 per share, payable on 2024-03-05, with the ex-dividend date set for 2024-02-23. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Aker BP ASA's dividend performance and assess its sustainability.
What Does Aker BP ASA Do?
Aker BP ASA operates oil and gas production, development, and exploration projects on the Norwegian Continental Shelf (NCS). Its projects include Alvheim field, Ivar Aasen, Skarv, and Valhall. Revenue is derived from a short list of clients and primarily consists of liquid sales. The Alvheim field, which developed with an FPSO, contributes the most volume for the company. Fields in close proximity to Alvheim are tied to Alvheim's FPSO. From the tiebacks, oil is transported from the field with shuttle tankers, and associated gas is exported to Scotland through a gas evacuation system.
A Glimpse at Aker BP ASA's Dividend History
Aker BP ASA has maintained a consistent dividend payment record since 2023. Dividends are currently distributed on a quarterly basis. Aker BP ASA has increased its dividend each year since -, and the stock is thus listed as a dividend king, an honor that is given to companies that have increased their dividend each year for at least the past 2024 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Aker BP ASA's Dividend Yield and Growth
As of today, Aker BP ASA currently has a 12-month trailing dividend yield of 6.24% and a 12-month forward dividend yield of 8.49%, suggesting an expectation of increased dividend payments over the next 12 months. Over the past three years, Aker BP ASA's annual dividend growth rate was 1.90%. Extended to a five-year horizon, this rate increased to 17.30% per year. Based on Aker BP ASA's dividend yield and five-year growth rate, the 5-year yield on cost of Aker BP ASA stock as of today is approximately 13.86%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Aker BP ASA's dividend payout ratio is 0.62. Aker BP ASA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Aker BP ASA's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 7 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Aker BP ASA's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Aker BP ASA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Aker BP ASA's revenue has increased by approximately 45.30% per year on average, a rate that outperforms approximately 90.86% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Aker BP ASA's earnings increased by approximately 128.90% per year on average, a rate that outperforms approximately 95.24% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 47.60%, which outperforms approximately 92.33% of global competitors.
Next Steps
In conclusion, Aker BP ASA's consistent dividend payments, impressive growth rate, manageable payout ratio, and strong profitability and growth metrics paint a positive picture for the company's dividend sustainability. With these factors in mind, investors may find Aker BP ASA an attractive option for those seeking steady dividend income with the potential for growth. As the oil and gas sector continues to evolve, Aker BP ASA appears well-positioned to maintain its dividend king status and offer value to its shareholders. For individuals looking to expand their investment portfolio with dividend-yielding stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover similar opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
