Bunhill: BP cutbacks

The last time BP cut its dividend was in 1967 in the wake of the Six Day War. But today's shareholders can take comfort from the fact that the then management took firm and drastic action to rein in spending at the oil giant. The Times of 18 August 1967 carried this report on its front page:

'All staff parties, including this year's Christmas treat for 1,000 children at the Isle of Grain, have been cancelled by BP because the company is having to economize, a spokesman said. . .'

When we asked BP if such cutbacks were being introduced this time around, all a spokeswoman would say was that the company was reviewing its community support activities on which it spent pounds 28.1m last year, pounds 8m of which went to charity. 'I'm not aware of any plans to curtail Christmas parties,' the spokeswoman said. They used to be made of sterner stuff.