BP 2015 Annual Report Download - page 252

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
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
2015 484.15 322.90 43.60 29.38
Year ended 31 December
2014: First quarter (January-March) 510.00 462.64 51.02 45.83
Second quarter (April-June) 526.80 467.10 53.48 47.14
Third quarter (July-September) 525.80 440.72 53.48 43.80
Fourth quarter (October-December) 455.45 364.40 44.14 34.88
2015: First quarter (January-March) 457.10 382.15 41.93 35.67
Second quarter (April-June) 484.15 420.15 43.60 39.50
Third quarter (July-September) 437.40 322.90 41.29 29.38
Fourth quarter (October-December) 403.25 329.30 37.23 30.13
2016: First quarter (to 16 February) 376.10 310.25 32.37 27.64
Month of
September 2015 355.85 322.90 32.41 29.38
October 2015 391.70 342.25 35.96 30.96
November 2015 403.25 364.50 37.23 33.38
December 2015 384.55 329.30 34.77 30.13
January 2016 376.10 323.10 32.37 28.46
February 2016 (to 16 February) 366.95 310.25 31.70 27.64
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 16 February 2016, 893,653,858.5 ADSs (equivalent to approximately
5,361,923,151 ordinary shares or some 29.01% of the total issued
share capital, excluding shares held in treasury) were outstanding and
were held by approximately 92,375 ADS holders. Of these, about
91,266 had registered addresses in the US at that date. One of the
registered holders of ADSs represents some 999,817 underlying
holders.
On 16 February 2016, there were approximately 262,938 ordinary
shareholders. Of these shareholders, around 1,577 had registered
addresses in the US and held a total of some 4,108,986 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 9.
A Scrip Dividend Programme (Scrip Programme) was approved by
shareholders in 2010 and was renewed for a further three years at the
2015 AGM. 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 operation of
the Scrip Programme is always subject to the directors’ decision to
make the Scrip Programme offer available in respect of any particular
dividend. Should the directors decide not to offer the Scrip Programme
248 BP Annual Report and Form 20-F 2015