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He has spectacularly destroyed shareholder value, the impact of CV notwithstanding.
Investors haven't bought into his grand plans to become not-an-oil company and invest billions in renewables when the winning technologies are far from clear in an area in which BP has no competitive advantage at all.
By all means sell off oil assets and shrink to make Greta happy. But give the cash back to shareholders. If some of the shareholders wish to please the good Lord, Greta, they can individually invest their returns into hydrogen or whatever other c**p takes their fancy. We don't need BP doing it for all of us.
I pray for Exxon or Chevron to take out BP in order that I can cut my losses. I would bite their hand off for a 400p bid even though I wouldn't get my money back.
Happy investor
agree
Dont think there are many that wouldnt like a 400p bid at the minute :)
Keep in mind that before this blasted virus hit the world's economy, BP was frequently well over 400 & paid a much higher dividend. Closing high just in 2020 a decent 504+. Their 52-week high is 521.5.
I'm in a 233.33, but I'm targeting higher than 400 before I exit. Maybe I'm being overly optimistic? Time will tell.
Most of the FTSE 100 has been battered since March. But we're more likely to see better times again after 2020, than not. - GLA.
lodan1 I would be very very happy to see it get back to 300 and get my money back, just have to sit and wait right now.
Gotitwrong
If the share price decline was just BT then you would have to look at the CEO and ask questions. You may argue that Looney is positioning BP for a future of less oil demand towards a company making very good profits from carbon neutral energy.
I read this Reuters article today. I don't think a change at the top will make much difference in the direction of the share price.
https://www.msn.com/en-gb/money/other/oil-extends-losses-as-rising-covid-19-cases-fuel-demand-concerns/ar-BB19ymVP?ocid=msedgntp
BP.. not BT of course
According to some in the industry, global oil demand may peak around 2030. Others think it'll be later. So even with the gradual switch to greener energy, most oil stocks (& other commodities) seem very cheap at this point due to matters out of their control.
Seems more a question of time before global economies start to open up again & see some solid SP recovery here. - GLA.
https://www.bnnbloomberg.ca/total-sees-oil-demand-peaking-around-2030-as-world-goes-green-1.1500978
leas, thanks for the link, I don't think a new CEO would make any difference at all given the present situation, I believe BP is a very good business and they are trying hard to look to the future and will recover just need to wait. All I hope is they don't have the need to cut dividends further as that would spell disaster for the SP.
Looney’s team; can they do it?
When working for a big multi-national oil company like BP, technical rigour in earth sciences and engineering becomes a way of life - its a technical industry and people are paid for what they know, rather than being paid for what they do.
And 30 years after John Browne revitalised BP based on a simple strategy in 1989 of only exploring and developing large, simple oil and gas fields, investors have reaped the rewards - until now. Browne’s strategy entranced the financial community because progress could be monitored against measurable technical and financial objectives. It worked and instilled confidence in investors and BP staff alike. Finding costs, development costs and so on could be compared with competitors to demonstrate relative performance against objectives. Simultaneously, there was a quiet revolution in earth sciences and drilling/production technology which led to discovery of vast petroleum resources.
Today, in the post-pandemic aftermath, BP seems to have no published competitive benchmarks for what the company is trying to achieve as an ‘energy company’. So, 1) how can staff or investors assess performance and 2) precisely who are BP’s new competitors? Furthermore, where are the experienced technical specialists in the top management team who understand power grids, solar and wind power generation and speak in megawatts rather than barrels?
Instead, its the same group who’s only experience is running an oil and gas company. Sure, the ‘net zero’ aspiration is understandable, but how will it be achieved, what financial returns will it generate and what are the intermediate objectives?
Lack of clear strategy is what has depressed the share price.
Hope not game over here sp keep drop
Hi Andy,
Definitely not "game over". All oil stocks dropping, as well as other commodities, because governments have decided to again curtail economic activity to save more lives. Overreaction, some say. They may have a point? Spanish Flu killed approx 50M in 1918. COVID so far, just over 1M.
But we are where we are. As long as government policy continues in this direction, many buyers will stay away not just from BP, but all oil stocks. - GL.
I think the strategy should be to shrink and focus only on the highest grade opportunities. I'm OK with cutting production over time but surplus cash should be returned to shareholders and/or used to reduce debt strengthening the balance sheet.
We should make small investments in green energy to show willing but reserve our firepower for the very best opportunities. No need to set arbitrary targets.
Must be something like 60 consecutive down days. Market is up which means today’s drop will just be less than if the market is down.
started at 270 when it dropped from 300 to 270..
kept on averaging at every 10p down, hopin that it gonna go up...never ever happening..
not sure how low this gonna go...
this has nothing to do with Looney as the whole sector is like this...
the share price was even better when the oil price was around $20 and there was a complete lockdown...
now lockdown has been lifted and the oil price is above $40, still share price got hammered by around 40% in last 60 days..
Exploration
That was an astute assessment imo