BP kicks off share buybacks

Oil giant BP said on Wednesday that it will begin a share buyback programme to repurchase up to 1.96bn shares.

The aim of the programme, announced by the company at the end of October, is to reduce the issued share capital to offset the ongoing dilutive effect of scrip dividends - which enable ordinary shareholders and ADS holders to elect to receive new fully paid shares or ADSs instead of a cash dividend - over time.

The buyback programme has been authorised for between 15 November and the date of the company’s 2018 annual general meeting.

Chief financial officer Brian Gilvary said at the time of the third quarter results in October: “Given the momentum we see across our businesses and our confidence in the outlook for the group’s finances, we will be recommencing a share buyback programme this quarter. We intend to offset the ongoing dilution from the scrip dividend over time.”

At 1130 GMT, the shares were down 1.3% to 496.30p.