|Bid||37.52 x 2200|
|Ask||37.58 x 4000|
|Day's Range||37.47 - 37.73|
|52 Week Range||35.73 - 45.38|
|Beta (3Y Monthly)||0.62|
|PE Ratio (TTM)||14.26|
|Forward Dividend & Yield||2.46 (6.61%)|
|1y Target Est||49.66|
The recent announcement of a Brexit deal is a welcome development for some, but, not necessarily all. Let's thus take a look at the winners and losers.
ConocoPhillips (COP) entered into an agreement to sell some of its portfolio in Australia for $1.39 billion. Meanwhile, downstream major Phillips 66 (PSX) launched a $3 billion new buyback program.
India has ample growth and investment opportunity in the natural gas space. To augment the development, the government of India is going to invest $60B in natural gas infrastructure.
TOTAL (TOT) to gain from the buyout of a stake in Adani Gas, as the move coincides with the government of India's announcement of $60B investment to strengthen gas infrastructure across the nation.
Let's see if BP p.l.c. (BP) stock is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks.
TOTAL (TOT) announces that it is going to start the construction of 52 MW Miyagi Osato Solar Park. This is likely to further expand its renewable operations in Japan.
By dint of this Pierce project, Royal Dutch Shell (RDS.A) is expected to add shareholder value by opening up supplemental gas reserves for UK households and industries.
Equinor (EQNR) is expected to receive EUR 500 million from the Arkona wind farm divestment, almost double of its investment in the same.
(Bloomberg) -- When BP Plc announced its historic exit from Alaska, Chief Executive Officer Bob Dudley pointed to an extra perk from the $5.6 billion sale: a significantly lower carbon footprint.Cutting emissions is important for Dudley, partly because influential shareholders are forcing BP to align its spending with climate goals. But there’s a catch.Hilcorp Energy Co., the buyer of the Alaska assets, plans to pour more money to boost production there than BP would have, according to Dudley. That could end up making the carbon problem worse than it was.The BP boss and his counterparts at the world’s biggest oil companies are caught in a dilemma. Investors are demanding they adhere to the goals of the Paris climate accord, while continuing to generate the mounds of cash that make them among the biggest and most consistent dividend payers.To strike a balance, one of the strategies for the executives is to sell high-cost and high-carbon projects. But that may only offload the emissions problem on to another company.“If one asset just passes to another and still operates at its maximum capacity, OK that may have helped the profile of that individual company, but does that actually do anything on a net effect of reduced emissions?” said Adam Matthews, the director of ethics and engagement at the Church of England Pensions Board. “That’s a legitimate question.”Oil Sands, CoalBP is not the only one passing on the responsibility. Royal Dutch Shell Plc divested its carbon-intensive Canadian oil-sands business in 2017 that is now operating under a new owner. Total SA sold its interest in a similar project, which was dormant, to a buyer looking to revive it. Miner Rio Tinto Plc exited coal by selling some of its assets to Glencore Plc, which plans to keep running them for years.The companies’ actions will be discussed when hundreds of executives gather this week at the Oil & Money conference. The event, which saw noisy protests from pressure group Extinction Rebellion outside its London venue on Tuesday, will change its name to Energy Intelligence Forum next year in a nod to climate change and the energy transition.While the asset sales help reduce costs, Dudley, Shell’s CEO Ben van Beurden and Total’s Patrick Pouyanne will also need to show they’re committed to the environment and not just offloading their responsibility.Still, for some investors selling the high-carbon projects makes the companies more resilient to future climate legislation, and that’s a step in the right direction.If companies can use the funds from the sale of carbon intensive projects to develop lower-intensity production, that’s a “decision that we are generally supportive of,” said Nick Stansbury, head of commodity research at Legal & General Investment Management, one of the largest shareholders of major oil companies.Big ChallengeOil executives say their big challenge is to cut emissions while continuing to supply energy to a growing global economy. Shutting down production can create shortages that could boost prices, reduce affordability and even encourage the start up of new projects.Also read: Norway’s Huge New Oil Project Clashes With Growing Climate FocusTo tackle the “radical changes” required to keep global warming at a safe level, demand for low-carbon energy would have to rise dramatically, said Tal Lomnitzer, a senior investment manager at Janus Henderson Investors. It would have to be aided by government policy changes and involve social pressure, he said.“A much faster transition is technically possible but actors need guidance,” Lomnitzer said. “It’s likely to arrive from the populace and then be expressed via bans, taxes and incentives.”The oil companies support a tax on carbon as a way to discourage emissions, and are promoting natural gas as a cleaner fuel. France’s Total applies a carbon price internally in its assessment of projects, a spokeswoman said, as do others like BP. Qatar, the world’s biggest liquefied natural gas exporter, started a carbon capture and storage project as part of an effort to address concerns about climate change, Energy Minister Saad Sherida Al-Kaabi said Tuesday.Investor pressure is also forcing the oil majors to increase spending on green energy. They’re building wind and solar projects, boosting electric-vehicle infrastructure and reducing the amount of gas they release into the atmosphere. But these investments are still a fraction of overall expenditure.“The transition from Big Oil to Big Energy will certainly take time,” said Rob Barnett, an energy policy analyst at Bloomberg Intelligence. “But we do see things headed in that direction.”(Updates with protests in the eighth paragraph.)\--With assistance from Isis Almeida, Francois de Beaupuy and Kevin Crowley.To contact the reporter on this story: Kelly Gilblom in London at email@example.comTo contact the editors responsible for this story: James Herron at firstname.lastname@example.org, Rakteem Katakey, Amanda JordanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- In a world that’s increasingly wary of fossil fuels, BP Plc’s newly appointed Chief Executive Officer Bernard Looney will have to prove the company can keep up with the times.BP has a highly profitable oil and gas business that pioneered exports from the Middle East, opened up giant fields in Alaska and the U.K. North Sea, and has paid billions of dollars to shareholders.But 49-year-old Looney needs to decide how quickly he wants to pivot BP toward cleaner -- typically less profitable -- forms of energy. The company is already transitioning to cleaner fuels, and the timing will be essential as the new CEO tries to keep influential investors on his side, and also offer an attractive career to talented young engineers.Looney has taken an unusual approach by asking a BP geophysicist in his 20s to “mentor” him on new innovations. During an interview earlier this year, the younger employee, Connor Tann, said he was somewhat in disbelief when he was picked to visit the office of the powerful executive.The two meet regularly to discuss not just technology but the culture of the younger generation, which Looney hopes to lure to his company from the attractions of Big Tech. The tall and lanky Irish executive, who carries himself with the charm of a politician, often looks worried when he’s asked if he’s keeping up with society’s attitudes.Looney has been “modernizing the upstream for BP and driving the digital agenda with a vision that the industry and the company are seen as cool, clean and low-carbon,” Barclays Plc analysts wrote in a note. “It is likely that the appointment of Mr. Looney as CEO may accelerate the journey that BP is on regarding the energy transition.”Delivering ProjectsLooney already has some experience under his belt. As head of BP’s upstream business, he steered the company through a worst-in-a-generation price slump that led to project cancellations, staff reductions and the mandate to squeeze more out of every dollar spent.He is credited with delivering projects on time and on budget. BP’s production is set to rival that of much larger Exxon Mobil Corp., including its stake in Rosneft PJSC, by the middle of the next decade.He frequently holds town halls and runs an online discussion forum that looks a bit like a Facebook page. Looney sees these as key to keeping BP relevant in a world where students are marching on the streets demanding a move to a cleaner world and investors are questioning if it’s safe to keep their money in fossil fuels.Looney’s Path at BPSource: BPHe helped drive the company toward digitizing its upstream operations and encouraging oil workers to wear devices to monitor their health. He’s also helped push the company toward better detecting methane leaks, a key contributor to global warming.‘Humbled’“I am humbled by the responsibility that is being entrusted to me by the board,” Looney said in a statement that announced his appointment to the top job. “And am truly excited about both the role and BP’s future.”In the past, he worked in the CEO’s office -- a position his predecessor Bob Dudley also held -- under the tumultuous reigns of former bosses John Browne and Tony Hayward. Those stints exposed him to major upheavals at BP including the company’s early, and eventually ill-timed, foray into solar. He was also in the thick of the action as the Deepwater Horizon accident resulted in the biggest ever U.S. oil spill, killed 11 people and which cost the company $70 billion in penalties.Looney, who joined BP in 1991 as a drilling engineer, was running the company’s North Sea operations when the rig exploded in the Gulf of Mexico.He flew out to Houston and worked for 60 days to try to stop crude gushing out of the well, he told an Irtish newspaper last year. At BP’s headquarters in London, employees were watching the company’s stock price plunge and U.S. President Barack Obama admonish their irresponsibility. People wondered if the company would survive the fallout. Looney called it the most challenging time of his career.Son of a FarmerLooney grew up on a dairy farm in Kerry, Ireland, with about eight arable acres, he told the Irish Independent newspaper last year. “We had 14 cows and it was pretty much subsistence farming,” he said. When the paper asked about his past-times he said he likes to follow tractor accounts on Instagram, as well as travel.He was the only one of his family to gain a university degree, with neither of his parents going to school beyond the age of 11, he said. Looney studied engineering at University College Dublin, and then got a degree from the Stanford Graduate School of Business in California.In February, he found himself on an all-male panel at a major London industry conference. He pointed out the practice, known as a manel, is not acceptable. Later at the company’s annual general meeting in May, a former engineer in his division took to the microphone to say people she speaks to in the upstream business are growing disillusioned because they don’t know what their purpose is amid the broader climate debate.Afterward, as dozens of shareholders jostled for Looney’s attention, he stood speaking to her to better understand her concerns.Looney will not be short of people wanting to have a say. A investor group overseeing $35 trillion called Climate Action 100+ said it wants BP, and 160 other companies, to be carbon neutral by 2050. That would drastically alter life at the oil major, which is aiming to keep its emissions from rising even as it increases production. The group has already bound BP to detail how each capital investment decision is aligned with the Paris climate accord, which Looney will be responsible for ushering through.“An incoming CEO who understands his organization, diversity, shareholders, free cash flow and how to make BP investible amid the growing energy transition concerns,” said Oswald Clint, an analyst at Sanford C. Bernstein Ltd. “We see no radical change in strategy.”To contact the reporter on this story: Kelly Gilblom in London at email@example.comTo contact the editors responsible for this story: James Herron at firstname.lastname@example.org, Rakteem Katakey, Helen RobertsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
BP Chief Executive Bob Dudley's decade at the helm of one of the world's biggest oil companies almost didn't happen. Dropped into the role in 2010 after the Gulf of Mexico oil spill disaster, 11 rig workers had just died and the company's finances were teetering. Dudley had lived in Mississippi in his youth and spent his holidays fishing on the Gulf.
(Bloomberg Opinion) -- A change at the top is a moment for reappraisal. Bob Dudley, BP Plc’s chief executive officer, rehabilitated the oil major after the fatal Deepwater Horizon rig explosion and spill in the U.S. in 2010. His replacement Bernard Looney, appointed on Friday, should avoid the temptation to think his job is primarily to sustain that legacy.Like all the big international oil companies, BP under Dudley acknowledged the need to adapt to a world that craves more energy but fewer fossil fuels. The standard industry blueprint is to target more profitable conventional oil production, while investing in renewables and cutting emissions by, for example, using carbon sinks to store greenhouse gases underground and planting forests. But the precise balance of these goals matters.BP must steer between two extremes. On the one hand, it faces pressure to cease all investment in hydrocarbon energy and channel all of its free cash flow into clean energy — a wholesale transformation of the company.Alternatively, it could accept that when an industry is disrupted by an epochal change, like the shift to renewables, new entrants are best placed to exploit the opportunity. On that view, BP and its fellow oil majors should effectively start running themselves down, while paying out dividends to shareholders who can invest in companies better placed to lead the transition to new forms of energy.It would be better to see BP’s role as doing something between those two alternatives: pursuing some activities in clean energy, while also providing cash for others to deploy. Looney’s first task will be to look honestly at where BP has distinctive capabilities in renewables. There are some areas where it makes sense for the company to put its financial resources to work. It can turn its retail gas stations into charging stations for electric cars, as it’s doing. In turn, there’s logic in investing in related electrification infrastructure. But it would be foolish to believe that BP can transform itself completely into a wind, solar and battery company with a small legacy oil business.Unusually for the new CEO of a $124 billion company, Looney must face the reality that BP’s conventional business is going to decline and his role is largely about managing that.Dudley had to contend with the political hostility generated by Deepwater Horizon. Looney has an even more profound challenge. He will be dealing with an investor base of university endowments, pension funds and sovereign wealth funds, which are all under pressure to exit oil investments completely. There could be worse uses for BP’s cash than buying back its shares and letting those shareholders decide where to re-invest.By reputation Looney is energetic, personable and sharp, as has been demonstrated by his rapid promotion through the ranks. He’ll need to bring vigor in carrying out a realistic appraisal of what BP can do and what’s best left to others.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.BP Plc said Chief Executive Officer Bob Dudley will retire early next year, a much-anticipated step after more than nine years at the helm of the oil and gas giant.He’s succeeded by Bernard Looney, the head of upstream who has led BP into new countries and championed the latest technology.Dudley’s most notable achievement was rescuing the company in the wake of the Deepwater Horizon catastrophe in the Gulf of Mexico that caused the biggest oil spill in U.S. history and killed 11 people. His tenure has been focused on restoring the company to the position it held before the 2010 accident as billions of dollars of penalties and compensation piled up.The 64-year-old will step down as CEO following the publication of BP’s full-year results on Feb. 4 and will retire on March 31, the London-based company said Friday.Speculation about Dudley’s resignation has been swirling for a while. Sky News reported last month that he was preparing to leave within a year and had held detailed discussions with Chairman Helge Lund about his retirement plans.While the speed of the announcement is a surprise -- Dudley said this week that the board hadn’t decided on the timing of his retirement -- Looney’s ascent to the top of the company follows a well-trodden path. Dudley’s two immediate predecessors also ran the upstream division before becoming CEO.Deputy CEO Lamar McKay has agreed to take a new role as chief transition officer, supporting the chairman and incoming CEO, BP said in a statement.BP shares in London have increased about 11% in the decade Dudley has been at the helm. They’ve largely recovered from the oil-price collapse that began in 2014, which hit the company just as it was starting to emerge from the impact of the oil spill, adding to Dudley’s challenges as he was forced to cut spending and defer projects.BP rose as much as 1.4% on Friday, and traded up 1.1% at 490.3 pence as of 10:11 a.m. London time.Looney, 49, has run BP’s upstream business since April 2016 and is responsible for all oil and gas exploration, development and production. He has steered the company into new countries including Mauritania and Senegal, and spearheaded the acquisition of U.S. assets from BHP Group Ltd. last year. The Irish executive has touted the benefits of technology in making BP’s operations safer and more efficient.The news “should not come as a surprise to the market given Mr. Looney’s role in modernizing the upstream for BP and driving the digital agenda,” analysts at Barclays Plc said in a note. “It is likely that the appointment of Mr. Looney as CEO may accelerate the journey that BP is on regarding the energy transition.”Profile: An Irish Farmer’s Son Set to Steer BP Through World Wary of OilBP, like all oil majors, is facing severe criticism over its contribution to climate change. While the fossil-fuels business continues to drive profits -- and underpin generous dividends -- climate concerns are increasingly affecting investment decisions. Dudley himself has pushed through plans to sell some oil projects and scale back others to align BP’s operations with the Paris accord.Amoco, TNK-BPIt’s a far cry from his days at U.S. oil giant Amoco Corp., where he started out and later ran its Russian operations before its 1998 acquisition by BP.That experience helped prepare him for a subsequent stint at TNK-BP, the Russian venture forged between BP and a group of billionaires which he led for five tumultuous years in the 2000s. During a bitter battle for control, Dudley survived raids by Vladimir Putin’s secret service, overcame bureaucratic hurdles that barred employees from working and outlasted a no-confidence vote, all before being forced to leave the country in 2008.Already a 30-year veteran of BP by the end of that decade, he was drafted into the top job after a series of missteps by then-CEO Tony Hayward, who faced public anger in the U.S. and criticism from lawmakers over his handling of the Deepwater Horizon disaster.BP’s resilience following the catastrophe was due in large part to Dudley’s deft dealmaking. The American citizen -- BP’s first non-British CEO -- negotiated massive energy deals in India and Russia in the year after the spill, while using BP’s enormous earning power to help make peace with Washington. Even before taking over from Hayward, he helped set up a multibillion-dollar trust fund to compensate individuals and businesses hurt by the accident.“He was instrumental in steadying the ship and rebuilding a top quartile portfolio,” analysts at Sanford C. Bernstein said in a note.‘Right’ AppointmentAt the time of the spill, Looney was running BP’s North Sea operations. He flew out to Houston to work on efforts to halt the leak, a time he’s since described as the most challenging of his career. He was subsequently appointed executive vice president of developments and then chief operating officer of production.“Bernard’s appointment is the right one,” the Bernstein analysts said. “We see no radical change in strategy but an incoming CEO who understands his organization, diversity, shareholders, free cash flow and how to make BP investible amid the growing energy-transition concerns.”(Updates with analyst comments starting in 10th paragraph)\--With assistance from Kelly Gilblom and Rakteem Katakey.To contact the reporter on this story: Amanda Jordan in London at email@example.comTo contact the editor responsible for this story: James Herron at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A change of leadership at BP. Bernard Looney is to replace Bob Dudley as CEO when he retires in February. The incoming CEO is no stranger to the oil giant. He took charge of BP's oil and gas production, or "upstream operations" in 2016, just as the sector grappled with the aftermath of the 2014 collapse in oil prices. The Irishman's energetic management style was quickly felt, as he spearheaded cost cutting and digitalization. Looney has helped lead BP through some of its fastest growth in oil and gas production - with output rising by around 20% since 2016. The same period saw the acquisition of BHP's portfolio of U.S. shale assets this year for $10.5 billion - BP's biggest deal in three decades. As CEO, he will be charged with continuing to adapt BP to the transition to lower carbon energy as pressure from investors to meet climate change targets grows. Bob Dudley will step down as CEO after the company's full-year results in February. He was appointed to the top job in 2010 following the Deepwater Horizon disaster in the Gulf of Mexico. Dudley led the company through near-bankruptcy after it caused the largest oil spill in U.S. history, and through an oil price crash four years later. Dudley has enjoyed overwhelming support from investors, although a majority of shareholders opposed his 2016 pay package, forcing the company to slash it by 40%.