Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Hi Zac
Always happy to oblige. In response, I see the catalyst for fair shareholder value being obtained in BP to be continued progress in the business strategy over the next few years. The high-gradeing and coming on stream of additional oil, the integration of acquisitions that BP have made over the past two years, ridiculed by some as a waste of money but have now grown in value and becoming profitable with impressive projected roi across the business together with an excellent main company infrastructure. The current share price does not reflect this value but it will in time. A 50% increase over the next few years would not be unreasonable in my opinion.
Part cyclical, part oil price manipulation, part recession fear, part unfounded demand worries are the reason BP, along with most of its peers are down. Fundementals are strong today and will improve going forward.
I know you are a very experienced investor Zac with a preference for funds. If I recall correctly, you sold out about £5.04ish. If you review on a 12 month basis you did well looking at todays price. If you sold a few months later you could have sold with an additional approximately 12% profit ( very rough maths and failing memory) so perspective and view point is key in assessment.
Good luck with you funds and investments.
Mark
Congratulations on your top up timing Happy
Just finished watching the webcast and I'm still as bullish as ever on BP regardless of the current market irrationality.
Fundamentally the share price drop from 570 to 441 was nonsense. In the long term fundamentals will drive BP to new heights.
I intend on holding until real value is obtained.
Excellent posts WeirdPal. I guess BP read your posts too....
2 February 2024
Kate Thomson appointed bp chief financial officer and joins board
The board of bp today announced that Kate Thomson has been appointed bp chief financial officer and will join bp's board, both with immediate effect. Kate has been interim chief financial officer since September 2023.
Helge Lund, bp chair commented: "I am delighted to confirm Kate's appointment as CFO and welcome her to the board. She has a detailed understanding of bp and the energy and finance sectors, combined with deep technical expertise. Her record of finance leadership together with her performance as interim CFO have clearly demonstrated her suitability to become bp's permanent CFO. The board looks forward to working with Kate and Murray as we continue with the execution of bp's strategy."
The unceremonious departure of Bernard Looney as boss of BP was the perfect opportunity for the oil giant to swiftly change course. Looney was the virtue-signalling chief in blue denim with a lively personal life.
He catapulted one of the world’s oldest fossil fuel drillers headlong into a green future of solar farms and wind turbines, embraced he/his pronouns on he/his personal Instagram feed, and was a vocal advocate of transgender awareness, only to be fired for misleading the BP board over a string of romantic affairs he had with colleagues.
The scandal was another blow to the reputation of an organisation where three out of the last four chief executives have had to resign prematurely but it created an opening to mend BP’s toxic culture, as well as rethink its pursuit of net zero nirvana in the face of growing scepticism from the stock market.
The appointment of finance chief Murray Auchincloss appears to end any such hopes. BP was screaming out for an outsider, yet the Canadian was not only the continuity candidate, it turns out he too is in a relationship with a colleague albeit with the full disclosures made this time, we are assured. He was also quick to pledge his commitment to Looney’s big green ambitions.
“Our strategy – from international oil company to integrated energy company – does not change. I’m convinced about the significant value we can create,” he said upon taking charge earlier this month.
Still, all hope is not lost. The arrival of an activist investor on the scene is unlikely to put a stop to the extra-curricular activities that seem to be rife at BP. Nevertheless, it could test Auchincloss’s resolve when it comes to sticking with a strategy of continuing to drill for oil and gas at the same time as funnelling profits into unproven renewables projects.
Bluebell Capital Partners calls it “irrational” and rightly so. BP is attempting to walk a tightrope, one in which it attempts to retain the faith of investors with the spoils of oil and gas exploration while simultaneously placating the environmental brigade with a reduction in those same drilling activities and the embrace of renewables that typically carry lower returns.
This is where the debate about the energy industry remains focused – can BP, Shell and rivals juggle widely conflicting interests as the world attempts to wean itself off fossil fuels? Increasingly it has the look of a circle that cannot be squared in which one side inevitably must be left feeling shortchanged in order to satisfy the demands of the other.
The result of BP’s desperate efforts to please everyone is that it has ended up stuck in a sort of no-man’s land where its strategy is neither one nor the other – a sort of half-hearted embrace of both approaches that, ironically, has left both both camps increasingly exasperated.
Bluebell’s complaint that the adoption of renewable technology has “depressed BP’s share price” appears to be
Part two....
Total returns have lagged Shell’s and those of foreign rivals including TotalEnergies, ExxonMobil and Chevron over the past four years. This, despite Looney rowing back on his green crusade in the face of mounting pressure. Can an engineer that has spent a lifetime working on a North Sea oil rig easily get a job installing wind turbines? Are there any similarities being building and operating a refinery or a gas pipeline and experimenting with unproven technology like green and blue hydrogen?
Just as important are doubts about whether BP is even set up financially to play a part in the energy transition. Renewable energy projects require high up-front expenditure and funky debt financing to keep things efficient. But BP is yet to spend anything close to the sort of meaningful sums that are needed and is expert only in wielding a balance sheet replete with cash. Instead, the impression is that of sceptical accountants in its treasury department drip-feeding the bare minimum against their will. A break-up is one option to allow better focus. Another rational move would be to run the company down and hand the proceeds back to investors as the world eventually moves on from fossil fuels. Neither is likely but unless Auchincloss can get BP and its cosy culture off the fence, shareholder unrest is likely to intensify and the risk of a hostile takeover will rise.
Beyond the paywall
BP is lost in net zero no-man’s land
The oil giant must get off the fence – or face the growing risk of a hostile takeover.
https://www.telegraph.co.uk/business/2024/01/30/bp-lost-net-zero-no-mans-land/
Hi meoryou
I read the article earlier. Not just because its downbeat but in my honest opinion it's a valueless article of meaningless drivel. I am an ii account holder so not surprised by the 'research'.
I hope you're good.
Based on bp's current forecasts, at around $60 per barrel Brent and subject to the board's discretion each quarter, BP expects to be able to deliver share buybacks of around $4.0 billion per annum, at the lower end of its $14-18 billion capital expenditure range, and have capacity for an annual increase in the dividend ...31 Oct 2023
After much head scratching and concerns for my failing memory I have come to the conclusion that the mods of this forum have carried out a deep detoxification of recent grime on the forum and my innocent posts suffered collateral damage.
Excellent posts today all
Not BP specific.
Our US peers are also around 52 week lows. The LSE is a small poor relation to the NYSE. They sneeze we catch a cold. On the bright side this has nothing to do with a new CEO or the company specifically. We continue to make billions and parts of the transition are now producing returns. (Electric charging investment is being returned to the balance sheet ) As frustrating and unexpected as the low sp currently is, I have full confidence that the share price will rise from these probable bottoming out levels.
BP CEO choice 'best possible outcome' for shareholders, RBC analyst says
Jan. 17, 2024 11:42 AM ETBP p.l.c. (BP) StockBy: Carl Surran, SA News Editor
BP's (NYSE:BP) confirmation of Murray Auchincloss as the new CEO is the best possible outcome for shareholders in the short term, as an external candidate would have brought further uncertainty on the direction of the business, RBC Capital's Biraj Borkhataria said Wednesday.
"With one overhang now removed from the investment case, we see room for BP to outperform from here on, given our belief that the current share price undervalues the business," Borkhataria wrote.
The decision sends a message of continuity, and the broader strategic direction should remain relatively unchanged, Jefferies analysts Giacomo Romeo and Kai Ye Loh said.
"As this uncertain period for BP concludes, we believe that it becomes more likely that the update at 4Q results could contain more material changes to BP's capital allocation and distribution policy," the analysts said.
BP (BP) investors should expect some strategic refocus as Auchincloss takes the helm, including a renewed focus on delivery of a near-term earnings growth story of 6%-7% annually in 2024-25, Citi analysts said.
"Given Murray's prior focus on financial roles within BP, we expect an emphasis on ensuring that the transition investment can be delivered with the lowest economic risk to BP shareholders," Citi said
BP price target cut, rated 'buy', 'positive catalysts' ahead - UBS
https://www.proactiveinvestors.co.uk/companies/news/1038663/bp-price-target-cut-rated-buy-positive-catalysts-ahead-ubs-1038663.html
BP's board was meeting on Tuesday evening to finalise the appointment of Murray Auchincloss as its next permanent chief executive, Sky News learns.
https://news.sky.com/story/bp-close-to-naming-acting-ceo-auchincloss-as-permanent-chief-13049798