Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
7-10%… I’m interested to know if that is based on costings or have you just plucked a number out of thin air?
The levy is on “excess profits” for UK oil & gas production only, which is tiny. Might cost us $1b over the next 3 years… just knock it off the $18b committed to investment in the UK.
Q2 results are going to be massive! Wouldn’t be surprised to see net debt around $23-4b, $3b+ buyback and a nice divi rise (hopefully 10% to account properly for inflation).
Personally don’t see it knocking 14% off the share price. How much it falls will depend on the scale of the cash grab. Is it going to be levied only on North Sea profits? If so it’s a drop in the ocean and I don’t suspect the SP would drop more than 3% before quickly recovering.
Good opportunity for BP to sweep up some more shares if the markets stumbles.
Lets see how the week ends
https://www.hl.co.uk/shares/shares-search-results/s/shell-plc-ordinary-eur0.07/share-charts
Select your date range along the bottom and add BP as a comparison. It tells an interesting story of the two companies IMO
81000 barrels a day form what I can see, out of 1.85m barrels total production. Hardly ground breaking, or am I missing something? Also a very small percentage of our gas production around the world.
Totally agree. It shouldn't happen at all unless windfall tax rules apply fairly across all sectors, not just on a liberal lefties populist whim! And the small amount of tax they'd raise wouldn't change peoples bills one bit...
https://www.bp.com/en/global/corporate/investors/results-and-presentations/quarterly-results-and-webcast.html
Check out the group datebook and more specifically the 'net debt' tab downloaded from the Q1 results page (about 3/4 the way down).
Lots of information that's worthwhile checking through in there!
Net debt is circa $27b. The debt is around $60b with around $33b in cash. They stated the return on that cash was good. It’s in the Q4 transcript as well.
They need more cash for margin calls and they want to get their credit rating back up. Once that has happened and they have bought back any debt sensitive to interest rates (which they stated they hd been doing), then the money should be used elsewhere IMO (personally I’d favour cancelling as many shares as possible while the price is suppressed as this has a tangible benefit in the long run).
I agree, Harmonica.
We already pay taxes above other industries and the government are now raking it in through fuel duty and VAT and the green levy.
We're investing £2 of every £1 we earn in the UK back to developing the energy of the future. Why should we pay more?
And after a £20b loss in 2020 is this really a windfall or a recovery? Peoples bills being high is a failure of governments around the world to invest in the energy of today.
Q4 Earnings Transcript
"Murray Auchincloss: Yeah. Sensitivity to interest rates. As I mentioned in the speech, an awful lot of the debt book that we’ve gone with recently on the debt raises was fixed. So we’re taking advantage of the low rates in the 20 and 30 year debt, and fixed most of our balance sheet at pretty low rates. We won’t re-trade those, so those should carry most of the debt book fixed for the next few decades. I think that will turn out to be fortunate timing. But two or three CFOs down the road will actually tell us what happens. As far as the rest - the leases aren’t sensitive to interest rate moves, so that's not a risk. And of course, the Macondo pay down
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remains out there as well on a gross basis, and that's not subject to interest rate volatility as well. So I think, you know, as I came into the job, there are a lot of people asking me about the strength of the balance sheet, the nature of our debt book. I think Kate Thomson and now Niamh Staunton have done a fabulous job of fixing it, lengthening it, and decreasing the risk profile of the business significantly. So I think that concern is largely behind us, and something that shareholders can now count on, moving forward."
I'm not sure rising rates will cause us too many issues.
https://edition.cnn.com/2022/05/05/energy/spr-biden/index.html