BP: What today's results mean for the dividend

The group realised cash savings of $4 billion, of which 40% was related to Forex benefits and lower fuel costs, with further reduction expected in 2010.

Mark A Bloomfield at Citigroup: Buy

BP's 2009 cost reduction target, steadily upgraded as the year progressed, stood at 'around $4bn'. The outturn of 'above $4bn' is a positive. However, guidance for 2010 which indicated potential for 'further savings' is unlikely to stand-out relative to peers in our view.

We retain a buy rating noting that a robust cash cycle the stock is absolutely cheap. However with the 2010 operational outlook (growth, refining, cost savings) no longer standing-apart from peers we reaffirm a preference for Royal Dutch Shell.

Alan Sinclair at Seymour Pierce: Buy

The quarterly dividend (to be paid in March) was announced at an unchanged 14 cents per share, equivalent to 8.7 pence. The net debt ratio (net debt to net debt plus equity) actually fell year-on-year to 20% from 21%. Net debt at the end of 2009 stood at $26.2 billion.

Organic capital expenditure in 2009 was $20 billion and the company expects the same level of capex in 2010. We do not think the dividend is in danger and see a small increment this year.

Combined with an undemanding 2010 price earnings ratio of just under nine times, this makes the buy case compelling.  

Charlie Menegatos, senior trader at Accendo Markets:

BP kept its quarterly dividend flat at 14 cents per share and intends to ask shareholders to allow it to offer dividends in the form of shares in future

Although the BP Q4 performance in many ways covers a challenging time for the industry, and is in many ways a great performance versus rivals, markets and shareholders overall are likely to view the results as a disappointment given BP's recent track record of smashing targets.

BP appears to be losing some of its impressive momentum from previous quarters, and this is likely to weigh on the share price going forward until the effects of its restructuring have fully filtered through the company.

Added to this, many shareholders used to chunky dividends in the past are likely to view the shares-for-dividends option as less than attractive, and in the worst case scenario BP could see its income orientated shareholders abandon ship for richer pickings.