BP, one of the largest oil companies in the world.
It has been widely reported the failing price of crude. Today crude is trading at $47 a barrel = £32
In economics, Revenue is defined as Price x Volume. [R=PV]
So when the volume of oil sales remains stable, and the price is falling, then revenue will fall.
One can see this the revenues of BP over the past 3 years.
BP’s revenues in £
2015 2014 2013
£153,689m £243,791m £261,421m
in £Billion
£153 Bn £243 Bn £261 Bn
One can see the dramatic fall in revenues year on year, and this makes the dividend harder and harder to pay.
Currently the dividend yield is over 7%, the question is how long is that sustainable.