Latest news with #LS Power
Yahoo
19-07-2025
- Business
- Yahoo
BP to sell US onshore wind business to LS Power for undisclosed sum
By Yamini Kalia and Raechel Thankam Job (Reuters) -BP has agreed to sell its U.S. onshore wind business to U.S.-based LS Power, as part of its ongoing divestment strategy, the energy major said on Friday, without disclosing a deal value. bp Wind Energy will be owned and operated under power and energy-focused investment and operating company LS Power's Clearlight Energy. BP has come under criticism from investors for its underperformance in recent months, leading to a strategy revamp with promises to cut debt, increase cash flow and a major pivot back to oil and gas after an ill-fated foray into renewables. The company is targeting $3 billion to $4 billion in disposals by the end of this year. It has pledged to divest $20 billion worth of assets by 2027 under CEO Murray Auchincloss' plans. "The absence of consideration in the press release is unusual given the potential size of the transaction," HSBC analyst Kim Fustier said. "This may suggest that the portfolio could be worth less than typical multiples for onshore wind assets," Fustier said, adding that another disposal will likely be needed to reach the disposal target this year. BP struck a deal with Apollo Global Management in March to sell its stake in a firm invested in the TANAP gas pipeline linking Azerbaijan and Turkey for $1 billion. The deal comprises 10 operating wind assets with a combined gross generating capacity of 1.7 gigawatts, BP said. The acquisition will increase Clearlight Energy's operating fleet to about 4,300 megawatts, LS Power said. Shares of the London-listed company were up 1.9%, with other energy companies also tracking a rise in oil prices.
Times
18-07-2025
- Business
- Times
BP offloads US wind farms in continued retreat from green energy
BP has offloaded its American onshore wind farm business as it continued its retreat from green energy. The sale to LS Power should help the FTSE 100 oil and gas group towards its target of $20 billion of divestments by 2027. It is seeking to shore up its heavily indebted balance sheet, including through asset sales of $3 billion to $4 billion this year. The sale of the US wind farms began in September last year, with BP saying at the time that the assets were 'not aligned' with its plans for growth in its solar venture Lightsource BP. Murray Auchincloss, chief executive, then pledged in February to 'fundamentally reset' BP's strategy, has abandoned most of the green energy goals set under his predecessor Bernard Looney and refocused the company on focus on oil and gas. BP declined to disclose the value of the wind farms deal but promised to give further details as part of its second-quarter results in early August. Irene Himona, analyst at Bernstein, said: 'Using 2024 average global renewables transaction multiples as a reference point, we estimate the deal consideration could reach circa $2.2 billion or above.' However, sources indicated the value was likely to be significantly lower than this, as the global averages did not reflect prices for ageing assets in the American market. BP is also looking to sell its Castrol lubricants business and a stake in Lightsource BP. It has already announced a deal this month to offload its petrol stations in the Netherlands for an undisclosed sum, thought to be in the hundreds of millions of dollars. BP has global operations including drilling for new oil and gas discoveries and retailing fuel and Marks & Spencer convenience food. It reported underlying profits of $8.9 billion last year. Its US wind farm business comprises ten operational wind farms that were mostly built or acquired in the mid to late 2000s as part of BP's first push into green energy. Lord Browne of Madingley, when chief executive, established 'BP Alternative Energy' in 2005 as the oil giant promised to go 'Beyond Petroleum'. BP wholly owns five of the wind farms, in Indiana, Kansas and South Dakota, and has 50 per cent stakes in five others in Colorado, Indiana, Pennsylvania, Idaho and Hawaii. They have a total generating capacity of 1.7 gigawatts and BP's share is 1.3 gigawatts. William Lin, BP's executive vice-president for gas and low-carbon energy, said: 'We have been clear that while low-carbon energy has a role to play in a simpler, more focused BP, we will continue to rationalise and optimise our portfolio to generate value. The onshore US wind business has great assets and fantastic people but we have concluded we are no longer the best owners to take it forward.'
The Guardian
18-07-2025
- Business
- The Guardian
BP agrees to sell US onshore wind business as it shifts back to oil
BP has agreed a deal to sell off its onshore wind business in the US as the oil multinational turns its back on renewable energy after a failed attempt to go green. The company said it would sell its share of 10 windfarms, which generate enough clean energy to power more than 500,000 US homes, to the New York-headquartered LS Power. The terms of BP's deal with the power and energy infrastructure company were not disclosed. However, the value of the windfarms, nine of which are operated by BP, is understood to be lower than the $2bn (£1.5bn) valuation estimated for BP's onshore wind business in the past. The sale is part of BP's plan to offload $20bn in assets 'to simplify and focus the business' after a failed attempt to reinvent the oil multinational as a net zero energy company, and as it comes under pressure over its sluggish share price. BP said it was 'no longer the best owners' to take the wind business forward. Renewable energy in the US has faced increasing pressure under Donald Trump's presidency. The deal emerged weeks after one of the architects of BP's failed green agenda, Giulia Chierchia, stepped down from her role as executive in charge of sustainability strategy to 'pursue other opportunities' outside the company as it shifted back towards oil and gas production. She will not be replaced at BP, the company said. BP's botched green ambitions have contributed to a collapse in the company's share price over recent years, which has made the 120-year-old company easy prey. Shell was forced last month to deny market speculation that it planned to snap up its smaller rival. Shell has lost almost a third of its market value in the past year and is now worth about £58bn. Its reported interest in BP emerged months after the activist hedge fund Elliott Management amassed a stake in the company to agitate for changes to BP's strategy and its board. So far the turnaround plan spearheaded by BP's chief executive, Murray Auchincloss, has failed to convince investors that the company can recover from a difficult few years during which its rivals have thrived by focusing on fossil fuels while global markets have been volatile. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Auchincloss plans to shore up BP's balance sheets by completing $3b-$4bn of divestments this year, and has already agreed deals worth $1.5bn. He is expected to set out further progress on the divestment drive alongside the company's financial results for the second quarter in the first week of August. Meanwhile, BP is searching for a new chair to replace Helge Lund. William Lin, the head of the company's gas and low-carbon energy business, said: 'We have been clear that while low-carbon energy has a role to play in a simpler, more focused BP, we will continue to rationalise and optimise our portfolio to generate value. 'The onshore US wind business has great assets and fantastic people, but we have concluded we are no longer the best owners to take it forward.'
Reuters
18-07-2025
- Business
- Reuters
BP to sell US onshore wind business to LS Power for undisclosed sum
July 18 (Reuters) - BP (BP.L), opens new tab has agreed to sell its U.S. onshore wind business to U.S.-based power grid operator LS Power, as part of its ongoing divestment strategy, the energy major said on Friday, without disclosing a deal value. BP has come under criticism from investors for its underperformance in recent months, leading to a strategy revamp with promises to cut debt, increase cash flow and a major pivot back to oil and gas after an ill-fated foray into renewables. The company is targeting $3 billion to $4 billion in disposals by the end of this year. It has pledged to divest $20 billion worth of assets by 2027 under CEO Murray Auchincloss' plans. "The absence of consideration in the press release is unusual given the potential size of the transaction," HSBC analyst Kim Fustier said. "This may suggest that the portfolio could be worth less than typical multiples for onshore wind assets," Fustier said, adding that another disposal will likely be needed to reach the disposal target this year. BP struck a deal with Apollo Global Management (APO.N), opens new tab in March to sell its stake in a firm invested in the TANAP gas pipeline linking Azerbaijan and Turkey for $1 billion. bp Wind Energy, the business being sold, will be owned and operated under LS Power's portfolio company Clearlight Energy, BP said. The deal comprises 10 operating wind assets with a combined gross generating capacity of 1.7 gigawatts, BP said. Shares of the London-listed company were up 1.9%, with other energy companies also tracking a rise in oil prices.
Times
18-07-2025
- Business
- Times
BP offloads US wind farms worth $2bn
BP has offloaded its American onshore wind farm business in a deal that analysts estimate could be worth more than $2 billion. The sale to LS Power should help the FTSE 100 oil and gas group towards its target of $20 billion of divestments by 2027. It is seeking to shore up its heavily indebted balance sheet, including through asset sales of $3 billion to $4 billion this year. The sale of the US wind farms began in September last year, with BP saying at the time that the assets were 'not aligned' with its plans for growth in its solar venture Lightsource BP. Murray Auchincloss, chief executive, then pledged in February to 'fundamentally reset' BP's strategy, has abandoned most of the green energy goals set under his predecessor Bernard Looney and refocused the company on focus on oil and gas. BP declined to disclose the value of the wind farms deal but promised to give further details as part of its second-quarter results in early August. Irene Himona, analyst at Bernstein, said: 'Using 2024 average global renewables transaction multiples as a reference point, we estimate the deal consideration could reach circa $2.2 billion or above.' She estimated that BP was 'on track to meet or exceed the mid-point of its 2025 goal, with circa 74 per cent of the target achieved, post the completion of today's deal'. BP is also looking to sell its Castrol lubricants business and a stake in Lightsource BP. It has already announced a deal this month to offload its petrol stations in the Netherlands for an undisclosed sum, thought to be in the hundreds of millions of dollars. BP has global operations including drilling for new oil and gas discoveries and retailing fuel and Marks & Spencer convenience food. It reported underlying profits of $8.9 billion last year. Its US wind farm business comprises ten operational wind farms that were mostly built or acquired in the mid to late 2000s as part of BP's first push into green energy. Lord Browne of Madingley, when chief executive, established 'BP Alternative Energy' in 2005 as the oil giant promised to go 'Beyond Petroleum'. BP wholly owns five of the wind farms, in Indiana, Kansas and South Dakota, and has 50 per cent stakes in five others in Colorado, Indiana, Pennsylvania, Idaho and Hawaii. They have a total generating capacity of 1.7 gigawatts and BP's share is 1.3 gigawatts. William Lin, BP's executive vice-president for gas and low-carbon energy, said: 'We have been clear that while low-carbon energy has a role to play in a simpler, more focused BP, we will continue to rationalise and optimise our portfolio to generate value. The onshore US wind business has great assets and fantastic people but we have concluded we are no longer the best owners to take it forward.'
