BP ex. Dividend today.

BP @ 487.4p, -7.4p (-1.5%)

BP's shares went ex. dividend today following last weeks 4th quarter results.

The shares have bubbled up nicely in the weeks up to last weeks announcement in anticipation of an increase to the dividend.

And the company duly delivered in the form of a 14% hike to the 4th quarter dividend taking it up to 8c or around 5p per share.

Higher oil prices and lower tax charges proved to be the seasoning to the company's much healthier profit before tax of £15bn as opposed to last years loss of £2.3bn.

The company is starting to look forward as well now with new projects/investment coming on stream which it hopes will contribute to cashflow improvements of 50% by 2014. Quite a short term horizon so that would be very positive if they can achieve it.

But in the near term the company continues to be dogged by the Gulf of Mexico issues and resistance from its senior partners in the project to shoulder any "ethical" liability. Indemnity clauses built into contracts at the time have been upheld by US courts (shielding Haliburton and Transocean) for the mechanics of the disaster but have at least kept the door open for a wider distribution of liability for the actual clean up costs.

A court case is also due to kick-off in New Orleans on the 27th Feb which is likely to be lengthy but should determine the scale of fines and clean up costs that BP will be required to pay v. the estimated £23.5bn.

There are still planned asset sales, with $18bn still to raise to add to the $20bn already raised.

BP's CEO, Bob Dudley stressed that the company was preparing "vigorously" for the court case but also stated that the company would be prepared to settle under fair and reasonable terms.

Its noticeable how many pages of legal updates/previews back up the end of the results

Still feels like a long way back yet for BP, but at least the company's management are talking positively about the future and what the company's prospects might look like.

I have concerns about the court case and would prefer to see a settlement rather than a drawn out saga. 
Sadly I see the latter but at least it looks like the company is starting to see the corner coming if not quite yet turning into it.