The paper "BPs Financial Analysis" is a perfect example of a business assignment. BP is one of the well-established companies in the oil and exploration industry. BP has grown from a humble beginning as an Anglo-Persian Oil Company, when it first discovered oil on the 26th of May 1908 in Persia (modern Iran) to a multinational corporation. The company was founded by William Knox D'Arcy. From that first, uncertain search for oil in Persia, BP has grown to become a global energy company. BP not only provides large quantities of oil but is also making strides along a promising path towards oil’ s alternatives.
The company’ s headquarters is located in London, U.K. It has subsidiaries all over the globe with the main concentration in the U. S.A, Russia, Azerbaijan, Angola, the U. K, North Africa, Canada, the Middle East and Asia. It is involved in the exploration, production, refining and distribution of natural gas, petroleum and other related products (BP 2012). This report outlines BP’ s Financial Analysis, Global Economy Outlook, Major Ventures, and Business Diversification: Alternative Energy, Competition plus Future of Oil Industry.
These topics are crucial for any party interested in having a deeper insight into the company’ s operations and their impacts in addition to the manner in which the company is able to respond to disasters that may occur in the oil and exploration industry. Needless to say, there are other areas that are of great significance to a company that also need to be addressed. However, this report may not capture all the details. Therefore, issues such as corporate governance and structure, remuneration, regulatory requirements, controls and procedures as well as the use of technology have not been captured.
This information is available in the company’ s reports as well as from electronic sources. Financial Analysis Table 1: Key Performance Indicators Key Fundamentals 31-Dec-12 31-Dec-11 Percentage Change Revenue (£ m) 231055.06 241629.88 -4.38% Pre-Tax Profit (£ m) 11571.21 24988.10 -53.69% Earnings per Share (EPS) 37.44p 87.47p -57.20% Price-Earnings 11.35 5.26 115.78% Dividend Cover 1.80 5.03 -64.21% Dividend Yield 5.00% 4.00% 25.00% Operating Margin 3.81% 8.52% -55.28% ROCE 10.52% 21.90% -51.96% Net Gearing 24.70% 27.05% -8.69%
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