BP 2014 Annual Report Download - page 248

Share prices and listings
Markets and market prices
The primary market for BP’s ordinary shares is the London Stock
Exchange (LSE). BP’s ordinary shares are a constituent element of the
Financial Times Stock Exchange 100 Index. BP’s ordinary shares are
also traded on the Frankfurt Stock Exchange in Germany.
Trading of BP’s shares on the LSE is primarily through the use of the
Stock Exchange Electronic Trading Service (SETS), introduced in 1997
for the largest companies in terms of market capitalization whose
primary listing is the LSE. Under SETS, buy and sell orders at specific
prices may be sent electronically to the exchange by any firm that is a
member of the LSE, on behalf of a client or on behalf of itself acting as
a principal. The orders are then anonymously displayed in the order
book. When there is a match on a buy and a sell order, the trade is
executed and automatically reported to the LSE. Trading is continuous
from 8.00am to 4.30pm UK time but, in the event of a 20%
movement in the share price either way, the LSE may impose a
temporary halt in the trading of that company’s shares in the order book
to allow the market to re-establish equilibrium. Dealings in ordinary
shares may also take place between an investor and a market-maker,
via a member firm, outside the electronic order book.
In the US, BP’s securities are traded on the New York Stock Exchange
(NYSE) in the form of ADSs, for which JPMorgan Chase Bank, N.A. is
the depositary (the Depositary) and transfer agent. The Depositary’s
principal office is 4 New York Plaza, Floor 12, New York, NY, 10004, US.
Each ADS represents six ordinary shares. ADSs are listed on the NYSE.
ADSs are evidenced by American depositary receipts (ADRs), which
may be issued in either certificated or book entry form.
The following table sets forth, for the periods indicated, the highest and
lowest middle market quotations for BP’s ordinary shares and ADSs for
the periods shown. These are derived from the highest and lowest
intra-day sales prices as reported on the LSE and NYSE, respectively.
Pence Dollars
Ordinary shares American depositary sharesa
High Low High Low
Year ended 31 December
2010 658.20 296.00 62.38 26.75
2011 514.90 361.25 49.50 33.62
2012 512.00 388.56 48.34 36.25
2013 494.20 426.50 48.65 39.99
2014 526.80 364.40 53.48 34.88
Year ended 31 December
2013: First quarter 482.33 426.50 45.45 39.99
Second quarter 485.43 437.25 44.27 40.12
Third quarter 477.53 430.30 43.75 40.51
Fourth quarter 494.20 426.55 48.65 41.30
2014: First quarter 510.00 462.64 51.02 45.83
Second quarter 526.80 467.10 53.48 47.14
Third quarter 525.80 440.72 53.48 43.80
Fourth quarter 455.45 364.40 44.14 34.88
2015: First quarter (to 17 February) 463.10 376.70 42.10 34.93
Month of
September 2014 494.90 440.72 48.11 43.80
October 2014 455.45 405.35 44.14 39.45
November 2014 452.45 408.80 43.08 39.19
December 2014 439.80 364.40 41.59 34.88
January 2015 445.68 376.70 40.44 34.93
February 2015 (to 17 February) 463.10 426.35 42.10 39.19
aOne ADS is equivalent to six 25 cent ordinary shares.
Source: Thomson Reuters Datastream.
Market prices for the ordinary shares on the LSE and in after-hours
trading off the LSE, in each case while the NYSE is open, and the
market prices for ADSs on the NYSE, are closely related due to
arbitrage among the various markets, although differences may exist
fromtimetotime.
On 17 February 2015, 883,647,170.5 ADSs (equivalent to approximately
5,301,883,023 ordinary shares or some 29.07% of the total issued
share capital, excluding shares held in treasury) were outstanding and
were held by approximately 95,858 ADS holders. Of these, about
94,687 had registered addresses in the US at that date. One of the
registered holders of ADSs represents some 979,038 underlying
holders.
On 17 February 2015, there were approximately 270,163 ordinary
shareholders. Of these shareholders, around 1,570 had registered
addresses in the US and held a total of some 4,005,034 ordinary shares.
Since a number of the ordinary shares and ADSs were held by brokers
and other nominees, the number of holders in the US may not be
representative of the number of beneficial holders of their respective
country of residence.
Dividends
BP’s current policy is to pay interim dividends on a quarterly basis on its
ordinary shares.
Its policy is also to announce dividends for ordinary shares in US dollars
and state an equivalent sterling dividend. Dividends on BP ordinary
shares will be paid in sterling and on BP ADSs in US dollars. The rate of
exchange used to determine the sterling amount equivalent is the
average of the market exchange rates in London over the four business
days prior to the sterling equivalent announcement date. The directors
may choose to declare dividends in any currency provided that a sterling
equivalent is announced. It is not the company’s intention to change its
current policy of announcing dividends on ordinary shares in US dollars.
Information regarding dividends announced and paid by the company on
ordinary shares and preference shares is provided in Financial
statements – Note 8.
A Scrip Dividend Programme (Scrip Programme) was approved by
shareholders in 2010. It enables BP ordinary shareholders and ADS
holders to elect to receive dividends by way of new fully paid BP
ordinary shares (or ADSs in the case of ADS holders) instead of cash.
The company intends to propose a resolution to the shareholders at the
244 BP Annual Report and Form 20-F 2014