BP 2014 Annual Report Download - page 254

Purchases of equity securities by the issuer and affiliated purchasers
In March 2013 BP began a share repurchase, or buyback, programme (the buyback programme) with an expected total value of up to $8 billion. The
decision to buy back shares followed the completion of the sale of BP’s 50% interest in TNK-BP to Rosneft. The programme expected to return to BP
shareholders an amount equivalent to the value of BP’s original investment in TNK-BP and to exceed that required to offset the earnings per share
dilution expected as a result of the sale of TNK-BP. It also reflected the reduction in BP’s asset base following its $38-billion divestment programme.
The buyback programme was completed in July 2014.
A further $2.3 billion of share repurchases were carried out in 2014 after the completion of the previously announced programme, funded by BP’s
continuing divestment of assets as announced in October 2013, and under the authority granted by shareholders at the 2014 AGM for BP to
repurchase up to 1.8 billion ordinary shares.
The following table provides details of share repurchase, or buyback, activity as well as details of ordinary share purchases made by the Employee
Share Ownership Plans (ESOPs) and other purchases of ordinary shares and ADSs made to satisfy the requirements of certain employee share-based
payment plans.
Total number
of shares
purchaseda
Average price
paid per share
$
Number of
shares
purchased
by ESOPs or for
certain employee
share-based
payment plansb
Number
of shares
purchased as
part of the
programmec
Maximum
approximate
dollar value
of shares
yet to be
purchased
under the
programme
$ million
2014
January 2 – January 31 162,240,000 8.09 – 162,240,000 1,194
February 3 – February 28 48,436,545 8.06 2,000,000 46,436,545 819
March 3 – March 31 36,410,000 8.03 – 36,410,000 527
April 1 – April 30 17,980,000 8.16 – 17,980,000 380
May 1 – May 30 17,386,000 8.54 – 17,386,000 232
June 2 – June 30 18,082,500 8.68 – 18,082,500 75
July 1 – July 31 23,927,485 8.57 – 23,927,485 –
August 1 – August 29 70,519,200 8.05 8,300,000 62,219,200 –
September 1 – September 30 123,054,453 7.66 – 123,054,453 –
October 1 – October 31 75,398,500 7.02 – 75,398,500 –
November 3 – November 7 8,029,320 7.02 – 8,029,320 –
December 2 – December 22 51,149,002 6.28 30,400,000 20,749,002 –
2015
January 9 – January 30 31,600,000 6.27 31,600,000 – –
February 2 to February 5 6,960,000 6.50 6,960,000 – –
aAll share purchases were of ordinary shares of 25 cents each and/or ADSs (each representing six ordinary shares) and were on/open market transactions.
bTransactions represent the purchase of ordinary shares by ESOPs and other purchases of ordinary shares and ADSs made to satisfy requirements of certain employee share-based payment plans.
cAt the AGMs on 11 April 2013 and 10 April 2014, authorization was given to the company to repurchase up to 1.9 billion and 1.8 billion ordinary shares, respectively, for the periods until the next AGM
in 2014 and 2015 or 11 July 2014 and 10 July 2015 respectively, being the latest dates by which an AGM must be held for the relevant year. This authorization is renewed annually at the AGM. The
total number of ordinary shares repurchased during 2014 was 611,913,005 at a cost of $4,796 million (including transaction costs) representing 3.36% of BP’s issued share capital excluding shares held
in treasury on 31 December 2014. All ordinary shares repurchased in 2013 and 2014 were cancelled in order to reduce BP’s issued share capital.
250 BP Annual Report and Form 20-F 2014