Bosses at BP are expected to unveil the oil giant's first annual loss in nearly two decades on Tuesday following a disastrous year for the blue-chip company.
But analysts and investors are hopeful chief executive Bob Dudley will resume dividend payments - after their suspension over the summer - in a signal that the firm is recovering from last year's Gulf of Mexico oil spill.
BP is expected to report a loss of at least £2.8 billion in its full-year results, after the tens of billions it set aside to cover costs of the Deepwater Horizon disaster are deducted.
The return of BP's dividend would be a key development for pension holders as well as investors given the stock previously accounted for an estimated one in every six pension pounds invested. The quarterly dividend is expected to be around seven cents a share - half the level announced in April.
BP upped its bill estimate to cover the cost of the oil spill to £25 billion in November, but analysts do not expect this to increase and have latched on to recent signs that only half of the £12.6 billion compensation fund will be required.
The financial hit from the oil spill will offset underlying replacement cost profits of £13.2 billion for the full year. Profits for the fourth quarter are expected to be around £3.1 billion. BP has managed to claw back around £12.6 billion through asset disposals - by selling interests in Argentina, North America, Egypt, Venezuela, Vietnam and Colombia.
The company has been able to benefit from a gradual increase in oil prices over 2010, which hit 90 US dollars a barrel at around the year end.
As well as the restoration of the dividend, the City will be looking for an update on the company's strategic overhaul. In the words of new chief executive Mr Dudley, the firm is on a "journey to re-establish trust in BP around the world - especially the US".
However, BP is embroiled in a legal tussle with shareholders at TNK-BP, another Russian joint venture, who argue the new deal breaches its shareholder agreement. The dispute will be brought to court in London today.
BP last reported an annual loss in 1992, when low oil prices, recession and strategic errors saw chief executive Bob Horton lose his job. The firm lost £458 million that year.
Bosses at BP are expected to unveil the oil giant's first annual loss in nearly two decades on Tuesday following a disastrous year for the blue-chip company.
But analysts and investors are hopeful chief executive Bob Dudley will resume dividend payments - after their suspension over the summer - in a signal that the firm is recovering from last year's Gulf of Mexico oil spill.
BP is expected to report a loss of at least £2.8 billion in its full-year results, after the tens of billions it set aside to cover costs of the Deepwater Horizon disaster are deducted.
The return of BP's dividend would be a key development for pension holders as well as investors given the stock previously accounted for an estimated one in every six pension pounds invested. The quarterly dividend is expected to be around seven cents a share - half the level announced in April.
BP upped its bill estimate to cover the cost of the oil spill to £25 billion in November, but analysts do not expect this to increase and have latched on to recent signs that only half of the £12.6 billion compensation fund will be required.
The financial hit from the oil spill will offset underlying replacement cost profits of £13.2 billion for the full year. Profits for the fourth quarter are expected to be around £3.1 billion. BP has managed to claw back around £12.6 billion through asset disposals - by selling interests in Argentina, North America, Egypt, Venezuela, Vietnam and Colombia.
The company has been able to benefit from a gradual increase in oil prices over 2010, which hit 90 US dollars a barrel at around the year end.
As well as the restoration of the dividend, the City will be looking for an update on the company's strategic overhaul. In the words of new chief executive Mr Dudley, the firm is on a "journey to re-establish trust in BP around the world - especially the US".
However, BP is embroiled in a legal tussle with shareholders at TNK-BP, another Russian joint venture, who argue the new deal breaches its shareholder agreement. The dispute will be brought to court in London today.
BP last reported an annual loss in 1992, when low oil prices, recession and strategic errors saw chief executive Bob Horton lose his job. The firm lost £458 million that year.