Latest news with #MurrayAuchincloss'
RTÉ News
18-07-2025
- Business
- RTÉ News
BP to sell US onshore wind business to LS Power
Energy major BP said today it had agreed to sell its US onshore wind business, bp Wind Energy, to US-based electricity transmission systems operator LS Power. BP has been divesting assets and partnerships over increasing investor pressure to improve profitability after its shares underperformed rivals. The deal comes under CEO Murray Auchincloss' plans to cut BP's investments in renewable energy and ramp up spending in oil and gas, in efforts to boost returns.
Reuters
27-03-2025
- Business
- Reuters
BP to sell over 260 retail stores, EV charging assets and more in Austria
March 27 (Reuters) - BP (BP.L), opens new tab said on Thursday it plans to sell its mobility and convenience business in Austria, as the oil giant reshapes its portfolio under CEO Murray Auchincloss' reset strategy. The scope of sale includes more than 260 retail sites across the country, its associated Austrian fleet business, electric-vehicle charging assets and BP's shares in the company operating the Linz fuel terminal non-operated joint venture. "As BP now looks to focus downstream and reshape our portfolio, we believe that a new owner will be best placed to unlock the business' full potential," said Emma Delaney, EVP, customers and products at BP. The oil major had laid down a strategy shift in February, under which it planned a $20 billion disposal programme through 2027 as it looks to cut back on renewables while increasing spending on oil and gas. Marketing process for the Austrian assets will begin immediately, with a sales agreement targeted by the end of the third quarter, the company said.
Reuters
19-03-2025
- Business
- Reuters
Shell might be BP and UK government's white knight: Bousso
LONDON, March 19 - In this new era of energy nationalism, the British government will want to keep an oil and gas company like BP (BP.L), opens new tab based in the country, but it may ultimately need the help of another UK energy giant to do so. London-based BP is currently in dire straits, struggling to get back on its feet following a flawed attempt to veer away from fossil fuels to renewables. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. BP shares have sharply underperformed peers since 2020, and investors appear unconvinced by CEO Murray Auchincloss' fossil fuel-focused strategy reset, opens new tab in late February, judging by the shares. Things got more difficult when activist fund Elliott Management built a 5% stake in BP in recent months. The fund is reportedly pushing for further changes, from a shake-up of the board to deeper asset sales and spending cuts. Meanwhile, rumours have swirled in the industry and across financial media about other companies that may seek to acquire BP as part of their growth strategies. The financial logic behind an acquisition by a U.S. rival or a Gulf national oil company is clear. For all of BP's current struggles, the company has a strong portfolio of oil and gas assets, including in the U.S. onshore shale basins and the Gulf of Mexico, Brazil, the North Sea and the Middle East. It also has a leading trading business and well known retail brand. It produced 2.36 million barrels of oil equivalent per day last year, generating $8.9 billion in net profit. NATIONAL CHAMPION This large global footprint makes BP a valuable asset for Britain. Western liberal democracies that do not have state-controlled energy or infrastructure champions must rely on close cooperation with private sector companies to further their national interests around the world. BP helps the UK do just that. This soft power was recently on display when British Prime Minister Keir Starmer highlighted, opens new tab BP's agreement with Iraq to invest billions in new oil, gas, power and renewables projects in the country following a meeting with his Iraqi counterpart Mohammed al-Sudani in London. The UK government will be loath to lose such influence by letting BP be snapped up by a foreign rival. Moreover, energy security is now, perhaps more than ever, a key element of national security. Russia's invasion of Ukraine in 2022 led to a surge in European power prices and disrupted global energy flows, putting a harsh spotlight on the importance of having access to abundant sources of energy and large domestic operators. European governments have since slowed their energy transition plans and are reconsidering the importance of domestic oil and gas production. The need for a strong national energy policy is especially important following Donald Trump's return to the White House. His administration's transactional, strong-arm approach to diplomacy has involved pressuring countries to make large-scale investments, such as oil and gas projects. Trump himself took a swipe at Britain's energy policy, urging the UK to 'open up' the North Sea to oil and gas exploration and scrap wind farms. And BP is a major investor in the United States. It directed around 40% of its $16.3 billion capital expenditure in 2024 to the U.S., where it produces around a third of its oil and gas, has two refineries and is a major buyer of U.S. liquefied natural gas. The UK won't want to lose this leverage. WHITE KNIGHT But what can British policymakers do to make sure BP stays in UK hands? While the British government will not be able to prevent other companies from putting forward bids for BP, it does have the power to block any such deal on energy security grounds under the National Security Investment Act, opens new tab. But it will be hard for the government to fight market forces for long if BP remains in a weak financial position. The obvious solution would be to encourage Shell (SHEL.L), opens new tab, the other British energy giant which moved its headquarters from The Hague to London in 2022, to step in and acquire BP. Such a combination could enable the UK to retain many of the industrial, financial and national security benefits BP brings. On paper, Shell, with a market cap of around $210 billion, should have no problems acquiring its smaller $90 billion rival. A combination would take years, however, and is bound to face tough anti-trust hurdles in many countries, first and foremost in the United States, where both companies have a large footprint. Shell would probably need to sell some assets to avoid overlaps between the two businesses. There's just one problem: Shell likely has little interest in such a deal. A mega-merger of this scale does not align with the ethos of CEO Wael Sawan, who is focused on cutting costs and narrowing the business's focus to liquefied natural gas and trading. But in this new era of growing nationalism and industrial policy a call from 10 Downing Street might be coming soon. ** The opinions expressed here are those of the author, a columnist for Reuters. ** Want to receive my column in your inbox every Thursday, along with additional energy insights and trending stories? Sign up for my Power Up newsletter here. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Bloomberg
06-03-2025
- Business
- Bloomberg
BP CEO Sees Pay Cut 30% After Profit Miss, Elliott Intervention
BP Plc Chief Executive Officer Murray Auchincloss' total compensation dropped to £5.36 million ($6.91 million) in 2024, about 30% less than the previous year, after the energy giant's profits disappointed. The London-based company's 2024 earnings results reported in February showed a steep drop in profits compared with the previous year. That set the stage for a subsequent strategic switch back to oil and gas after years of shifting away from fossil fuels, as it strives to catch up with rivals such as Shell Plc which were quicker to pivot back to core businesses.
Yahoo
05-03-2025
- Business
- Yahoo
Saudi Aramco exploring initial bid for BP's Castrol unit, source says
(Reuters) - Saudi Aramco is in the early stages of considering a potential bid for BP's lubricant business Castrol, according to a person with knowledge of the matter. BP has been exploring all options around its Castrol business, including a possible sale, as part of a strategic review. The business would be expected to be worth around $6 billion to $8 billion, Ashley Kelty, an analyst at Panmure Liberum, said in a note last week. A BP spokesperson declined to comment. Aramco did not immediately respond to a Reuters request for comment. BP shares were up 1% at 412.15p at 1332 GMT. Bloomberg News was first to report about Aramco's interest in Castrol on Wednesday, which comes a day after the Saudi oil giant reported a drop in its annual profit and signalled it will slash its dividend payouts by nearly a third this year. BP said last week it was reviewing its lubricants business, Castrol, and targeting $20 billion in divestments by 2027. The divestment program is a key part of CEO Murray Auchincloss' strategy to reduce capital expenditures, cut costs, divest assets, and drive higher cash flow and returns, ultimately aiming to restore investor confidence and enhance earnings. BP, which has underperformed peers like Shell and Exxon, has come under increasing pressure to change strategy after news that U.S. activist investor Elliott Investment Management has built a 5% stake in the company. According to Elliott, BP would benefit from selling its Castrol lubricants and its network of service stations to unlock value and boost share buybacks, a source told Reuters last week. Bloomberg's report said Aramco hasn't made a final decision on the structure of a potential bid for Castrol or whether it will proceed as deliberations are still in the early stage. Sign in to access your portfolio
