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More authors call for Baillie Gifford to divest from fossil fuels

htTps://www.thenational.scot/news/23860703.authors-call-baillie-gifford-divest-fossil-fuels/

MORE authors have joined calls for the Scottish investment bank Baillie Gifford to cut ties with the fossil fuel industry.

In August, climate activist Greta Thunberg cancelled an appearance at the Edinburgh International Book Festival due to the event being sponsored by Baillie Gifford.

She said she could not attend due to Baillie Gifford’s investments in the fossil fuel industry and said its sponsorship of cultural events amounted to “greenwashing”.

The group Fossil Free Books (FFB) has since issued a statement calling on the 12 book festivals currently sponsored by Baillie Gifford to urge the company to divest from fossil fuels.

Yes and as we move through 2024, I expect to see a similar deal struck for chevrons share, potentially into 2025.

after all, chevrons latest annual report says..

The company’s worldwide net oil-equivalent production in 2022 was 3 million barrels per day.

The company estimates that 2023 Capex will be approximately $14 billion.

.....

and from what I understand from PB comments today, they aren't really interested in developing their non operated share of the CWLH fields.

HI Roxi,

yep - i think they are the ones who have been keeping the lid on any rise.

I expect the next thing we will see, is the October slides of akatara.

Dumping probably for ESG no doubt...

dated sept 2023

https://www.bailliegifford.com/en/uk/individual-investors/insights/ic-article/2023-q3-fossil-fuels-an-answer-to-concerns-10035889/

The 2 per cent’

But what about the flipside? We have declared that 2 per cent of our investments is in companies that have some sort of fossil fuel connection. This deserves explanation as it is not quite what it seems.

Our fossil fuel exposure has trended down over time, and the 2 per cent of our investments nowadays is a very low number in most asset managers’ books. It is far lower than the oil, gas and coal exposure that index-tracking funds (passive funds) would have naturally – this would typically be more than 10 per cent of their investments. But even the 2 per cent gives an exaggerated picture of our actual exposure since it includes companies that have as little as one-twentieth of their current revenues coming from fossil fuels.

Some of these companies might surprise you. Who would have thought that the supermarket chain Tesco is classified as a fossil fuel company? It’s included because of its petrol stations. It seems unreasonable to either boycott or sell shares in Morrisons, Tesco, Asda and Sainsbury’s for this reason.

Adjusted to account for the varied sources of revenues in these companies, our exposure to fossil fuels would be less than 1 per cent of our investments. This is de minimis.

But it is not zero. Zero fossil fuel exposure today is not realistic. Fossil fuels still make up around 80 per cent of global energy use. It may also not be aligned with the principles of a ‘just transition’ and ‘differentiated responsibilities’ (the principle that countries at different stages of development should have different targets) that lie at the heart of the Paris Agreement

You will of course have noted that Baillie Gifford have reduced from 8.28% as of end sept, to 7.76% shareholding as at 31st Oct

now we know who the seller has been last month

I thought only hanbury and his team from odeys brook management went to lancaster. I don't think JSE were held in brook - do you know if this was the case.

Also - odey asset management still had about 2.1 million shares to get rid of, as at end sept - so they may be our recent chunky seller

More like general market malaise - look at serica - was about 270 a share in sept and is now back down to 229 a share - a drop of 14.5%.

in the same timeframe, jadestone has dropped 21%

They haven't specifically stated that they are up for sale, however, reading between the lines from what they have stated in their interims implies that a sale is the direction of travel for the o and g assets ...

The streamlining of the management structure and rebranding of the Company from IGas Energy plc to Star Energy Group plc, which is now complete, were important steps in refocussing resource and redefining the Company's strategic direction.

The Group has significant intrinsic value in its oil and gas portfolio, from the existing producing assets, where the focus is optimisation, from the portfolio of near term development opportunities that can give rise to a step change in production and from the significant ring fenced tax loss position. Whilst our focus is on delivering this value from our existing conventional assets, the Group is fast developing its geothermal portfolio, deploying our decades of expertise in developing subsurface energy sources

and after the croatian acquisition...

This is an important next step in our strategy to transition, over time, into a significant player in the geothermal market and to deliver future value for our shareholders."

It is always possible, that once the tanker is full and it disconnects from the fpso- the tug is there to ensure it can move away safely, without hitting the fpso.

Looks busy around montara fpso...

grace ace tanker - anchored

bhagwan houtman tug- underway montara

pacific rapier -supply/tug vessel - underway montara

silver sawsan - chemical/oil tanker - underway montara - arriving today

Short video of JGC workers, digging a pipeline trench alongside the road..

htTps://www.youtube.com/watch?v=QwUoParBuzk

And 18 min video of some large air cooled heat exchangers en route...26th/27th sept

htTps://www.youtube.com/watch?v=i4_2zetjX_c

Thanks ria !

Not to mention the largely ignored oil and gas assets that this company has - a 2000 boepd operation, bringing in £23 million revenue in six months, with Ring fenced tax losses of £259 million. They have paid down over £5 million of debt in the last year and are looking on track to be net debt free by end december, if they remain on the current path.

they are in the process of decommissioning the non economic wells and making the entire o and g portfolio as neat and clean as possible - as they will sell it, to fulfil their stated ambition of a full move into geothermal. They have stated that they are going to transition from the o and g business to the renewables - so it goes without saying, the o and g portfolio will be up for sale

they talk of significant intrinsic value in the oil and gas portfolio - they are right and it way exceeds the current mcap of the company. If they do sell the o and g portfolio soon, it will be several multiples of the current price, that much I am quite sure of.

then they will attract the buyers of green only businesses, who currently cannot touch it, due to the o and g assets on the books

I note on the call, that when questioned on further acquisitions, paul hesitated and then said, yep we are looking at opportunities that we are excited about - we hope that one of them will move further forward, however, we will talk about that in due course

I guess the hesitation, was that he immediately had something come to mind, but was careful not to mention anything specific.

Yes - and should strengthen the future plans for this asset

Https://www.con-telegraph.ie/2023/09/14/number-of-mayo-councillors-confirm-support-for-new-erris-gas-line-project/

In a significant development, a number of Mayo county councillors have confirmed their support for €50 million Europa Oil and Gas in its endeavour to connect the Corrib gas field in Erris to the recently discovered Inishkea field.

From jadestones twitter page..

Key long lead items have now started to arrive at site and the project remains on schedule for first gas in H1 2024. $JSE #JSE #Jadestone #oilandgas

HTTps://www.jadestone-energy.com/assets/indonesia-portfolio/lemang/

august video of akatara progress available

An excellent update with work streams progressing as planned