Latest news with #BirajBorkhataria
Yahoo
22-05-2025
- Business
- Yahoo
New report reveals surprising trend for major oil companies: 'Investors are looking for some reassurance'
Major oil companies are facing their most challenging financial year since the pandemic, with profits steadily declining as crude prices fall, the Financial Times reported. This marks the third straight year of declining profits for oil giants such as ExxonMobil, Shell, and BP. The combined earnings of the five largest Western oil companies have plummeted by about $90 billion since 2022, when Russia's invasion of Ukraine caused temporary spikes in prices. These once-reliable stocks have become increasingly risky long-term investments as the world embraces clean energy solutions. Oil prices recently dipped below $60 per barrel, and analysts predict prices could drop more than 20% from last year's average. This financial reality is forcing oil companies to cut spending and reconsider their promises to shareholders. BP, for example, based its shareholder returns on an oil price of $71.50 per barrel, well above current market conditions. Each dollar below that threshold costs the company approximately $340 million in profits. Meanwhile, clean energy companies continue showing stronger long-term growth potential. Despite normal market fluctuations, renewable energy investments offer better stability as global policies and consumer preferences increasingly favor sustainable options. This shift won't just help the environment. It's creating new jobs, driving innovation, and building more resilient economies all over the world. "Given how uncertain the environment is, investors are looking for some reassurance," Biraj Borkhataria, an analyst at RBC Capital Markets, told the Financial Times. This uncertainty has led to pointed questions about which companies will be the first to cut shareholder payouts. According to Fraser McKay of energy consultancy Wood Mackenzie, "We now expect global upstream development spend to fall year on year for the first time since 2020," meaning this ongoing transition's industry-wide impact is bringing us toward a cleaner, more sustainable economy. Do you think gas stoves should be banned nationwide? No way Let each state decide I'm not sure Definitely Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Globe and Mail
14-05-2025
- Business
- Globe and Mail
RBC Capital Sticks to Its Buy Rating for Chevron (CVX)
In a report released yesterday, Biraj Borkhataria from RBC Capital maintained a Buy rating on Chevron (CVX – Research Report), with a price target of $175.00. The company's shares closed yesterday at $141.62. Protect Your Portfolio Against Market Uncertainty According to TipRanks, Borkhataria is ranked #3819 out of 9492 analysts. In addition to RBC Capital, Chevron also received a Buy from Argus Research's Bill Selesky in a report issued on May 7. However, on May 6, DZ BANK AG downgraded Chevron (NYSE: CVX) to a Sell. Based on Chevron's latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $47.61 billion and a net profit of $3.51 billion. In comparison, last year the company earned a revenue of $46.58 billion and had a net profit of $5.5 billion
Business Insider
13-05-2025
- Business
- Business Insider
RBC Capital Sticks to Its Buy Rating for Chevron (CVX)
In a report released yesterday, Biraj Borkhataria from RBC Capital maintained a Buy rating on Chevron (CVX – Research Report), with a price target of $175.00. The company's shares closed yesterday at $141.62. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. According to TipRanks, Borkhataria is ranked #3819 out of 9492 analysts. In addition to RBC Capital, Chevron also received a Buy from Argus Research's Bill Selesky in a report issued on May 7. However, on May 6, DZ BANK AG downgraded Chevron (NYSE: CVX) to a Sell. Based on Chevron's latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $47.61 billion and a net profit of $3.51 billion. In comparison, last year the company earned a revenue of $46.58 billion and had a net profit of $5.5 billion
Bloomberg
24-04-2025
- Business
- Bloomberg
Eni Sees Lower Cash Flow, Maintains Buyback by Cutting Costs
Eni SpA reduced its outlook for free cash flow this year following the oil price slump triggered by global trade tensions, but signaled no impact on its share buybacks as it took action to reduce spending. The Italian company is the first major oil and gas producer to report first-quarter results, and analysts including RBC's Biraj Borkhataria also expect Eni's peers to review their plans for buybacks and other spending after the price of a barrel of crude plunged into the $60s.
Yahoo
10-02-2025
- Business
- Yahoo
BP shares hit highest since August after Elliott's stake build
LONDON (Reuters) - Shares in oil major BP rose by 7% to their highest since August in early trade on Monday, after Reuters reported activist investor Elliott Management had built up a stake in the company, citing a source. By 0823 GMT, the shares were up 7.3% to 464.75 pence, on track for their biggest daily gain since February 2023. Last year BP shares fell by almost 16% compared with other energy majors Shell, which fell nearly 4%, and ExxonMobil, which rose 8%. "Given BP's underperformance versus think any activist would call for a change in the chairperson at the very least," RBC Capital Markets analyst Biraj Borkhataria said. BP CEO Murray Auchincloss has been trying to restore investor confidence in the company's strategy and following the resignation of his predecessor Bernard Looney in September 2023 for failing to disclose relationships with employees. U.S.-based Elliott is seeking to boost shareholder value by urging BP to consider transformative measures, Bloomberg News reported earlier on Saturday, calling Elliott's stake in the company "significant". The source did not provide the size of the stake, while BP and Elliott have declined to comment. "In terms of strategic business reviews, we would expect a push to effectively split up the core oil and gas segment to some of BP's transition growth engines, in order to help minimise capital into these areas," Borkhataria said. Sign in to access your portfolio
