Latest news with #BPplc
Forbes
26-06-2025
- Business
- Forbes
Shell Won't Buy BP, Should You?
CHINA - 2025/06/22: In this photo illustration, the logo of BP p.l.c. is displayed on the screen of ... More a smartphone. (Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images) Shell refuted the takeover rumors, yet the speculation emphasizes what investors are beginning to recognize: BP's significant discount and strategic shift might be due for reevaluation. BP plc stock (NYSE: BP) experienced a jump of as much as 10% intraday on June 25 following a report from The Wall Street Journal indicating that Shell PLC (NYSE: SHEL) is in preliminary discussions to purchase the British oil giant in a deal that could be the largest in the energy sector for decades. Shell promptly rejected the report, but the market's response was telling—BP shares eventually ended up 1.6%, suggesting that investors are reassessing the company's strategic worth and potential for a takeover. With shares trading around $30 and increasing only 3% this year, BP has lagged behind the S&P 500 and is well behind its U.S. counterparts. However, hidden beneath this modest performance is a complicated situation: a company in strategic transition, possessing a substantial upstream footprint, fluctuating earnings, and a revised energy strategy. With a market capitalization of $80 billion—less than half of Shell's—BP might be more susceptible than ever to merger and acquisition speculation. Nevertheless, if you seek potential gains with a steadier experience than an individual stock, consider the High Quality portfolio, which has outperformed the S&P and achieved >91% returns since its inception. Separately, see – What's Happening With BBAI Stock? M&A Chatter Unlikely – For Now Notwithstanding the headlines, a complete Shell acquisition of BP remains extremely improbable. For starters, BP holds $60 billion in debt (approximately $27 billion in net debt), a legacy partly stemming from the Deepwater Horizon disaster, which deters financially cautious bidders. In addition, any merger involving two European oil titans would inevitably attract immediate examination from regulators in the U.K., EU, and U.S., particularly concerning dominance in upstream production, LNG, and fuel retailing. Beyond antitrust concerns, a transaction of this magnitude would elicit political backlash. The U.K. government regards BP as a strategic asset, and endorsing a takeover—even by another British-Dutch entity—could incite nationalist opposition. Merging two global energy giants with differing strategies would also introduce operational challenges. A more feasible outcome? BP could be dismantled and sold in parts to various buyers. This route would be easier to navigate legally and might release more value than a massive merger. Valuation: A Discount? From a valuation perspective, BP appears appealing. The stock is trading at a price-to-sales ratio of merely 0.44x—roughly 20% to 30% lower than its five-year average. In comparison, integrated oil firms like Exxon Mobil (NYSE: XOM), Chevron Corporation (NYSE: CVX), and Shell attract significantly higher P/S ratios ranging from 0.7x to 1.3x. The discount indicates investor apprehension regarding BP's evolving strategy, declining earnings, and structural obstacles. Nonetheless, it also provides the possibility of upside if execution stabilizes. Refer to our analysis BP Valuation for additional insights into what is influencing our price estimate for the stock. Quarterly Struggles, Long-Term Promise Q1 results illuminated BP's internal conflict. Oil production and operations produced solid profits due to increased volumes and pricing. However, gas trading and low-carbon ventures faltered, dragging down overall performance. The company reported an underlying replacement cost profit of $1.38 billion, falling short of the $1.6 billion consensus and a significant decrease from $2.7 billion the previous year. Looking forward, production is anticipated to decline in 2025 due to asset divestitures, while refining margins and currency headwinds continue to exert pressure. Still, BP has three new startups and six discoveries in development, presenting growth potential if it can stabilize its performance. Strategy Shift: Back to Black Gold After years of fluctuating between green ambitions and fossil fuel fundamentals, BP is recalibrating its direction. In 2020, the company committed to a 40% reduction in oil output and to take a leading role in renewables. However, lackluster returns and increasing pressure from shareholders have reversed that commitment. Currently, BP is intensifying its focus on oil and gas, aiming for 2.5 million barrels of oil equivalent per day by 2030—up from just under 2.4 million last year. Concurrently, it has cut renewable spending from $5 billion to as low as $1.5 billion annually and increased traditional capital expenditures to $10 billion. Changes in executive roles—most notably the upcoming departure of Giulia Chierchia, EVP of strategy and sustainability—further indicate a definitive shift back to hydrocarbons. Hydrogen Plays Still On the Table Despite scaling back on renewables, BP continues to engage in hydrogen initiatives. Its pipeline includes joint ventures with Iberdrola in Spain and Cummins in Germany, along with H2Teesside—one of the U.K.'s largest planned blue hydrogen production sites. These initiatives suggest that BP isn't entirely relinquishing its energy transition goals but is rather refocusing on technologies with more immediate economic potential. The Bottom Line: Merger Unlikely, Value in Focus Although a Shell–BP merger may capture headlines, it realistically faces too many obstacles—regulatory, political, and financial—to become a reality anytime soon. Still, the speculation underscores something far more significant: BP's depressed valuation and strategic uncertainty are attracting renewed interest. For value-minded investors, BP might present upside—provided that the company successfully implements its renewed oil-centric strategy and regains margin confidence. Trefis partners with Empirical Asset Management—a wealth manager based in the Boston area—whose asset allocation strategies yielded positive returns during the 2008-09 period when the S&P plummeted by more than 40%. Empirical has integrated the Trefis HQ Portfolio into its asset allocation methodology to offer clients improved returns with reduced risk compared to the benchmark index—a less tumultuous experience, as indicated by HQ Portfolio performance metrics.
Globe and Mail
26-06-2025
- Business
- Globe and Mail
Shell plc ('Shell') statement re BP plc ('BP')
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION FOR IMMEDIATE RELEASE THIS ANNOUNCEMENT IS AN ANNOUNCEMENT UNDER RULE 2.8 OF THE UK CITY CODE ON TAKEOVERS AND MERGERS (THE 'CODE') 26 June 2025 Shell plc ('Shell') statement re BP plc ('BP') In response to recent media speculation Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach to, and no talks have taken place with, BP with regards to a possible offer. This is a statement to which Rule 2.8 of the Code applies and accordingly Shell confirms it has no intention of making an offer for BP. As a result Shell will be bound by the restrictions set out in Rule 2.8 of the Code. We remain focused on delivering more value with less emissions through performance, discipline and simplification. Under Note 2 on Rule 2.8 of the Code, Shell reserves the right to set the restrictions in Rule 2.8 aside in the following circumstances: with the agreement of the board of BP; if a third party announces a firm intention to make an offer for BP; if BP announces a Rule 9 waiver (see Note 1 of the Notes on Dispensations from Rule 9) or a reverse takeover (as defined in the Code); and if there has been a material change of circumstances (as determined by the Takeover Panel). The contents of this announcement will be available at The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement. ENQUIRIES Shell Media Relations
Associated Press
26-06-2025
- Business
- Associated Press
Shell plc ('Shell') statement re BP plc ('BP')
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION FOR IMMEDIATE RELEASE THIS ANNOUNCEMENT IS AN ANNOUNCEMENT UNDER RULE 2.8 OF THE UK CITY CODE ON TAKEOVERS AND MERGERS (THE 'CODE') 26 June 2025 Shell plc ('Shell') statement re BP plc ('BP') In response to recent media speculation Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach to, and no talks have taken place with, BP with regards to a possible offer. This is a statement to which Rule 2.8 of the Code applies and accordingly Shell confirms it has no intention of making an offer for BP. As a result Shell will be bound by the restrictions set out in Rule 2.8 of the Code. We remain focused on delivering more value with less emissions through performance, discipline and simplification. Under Note 2 on Rule 2.8 of the Code, Shell reserves the right to set the restrictions in Rule 2.8 aside in the following circumstances: The contents of this announcement will be available at The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement. ENQUIRIES Shell Media Relations International +44 207 934 5550; U.S. and Canada: Contact form LEI number of Shell plc: 21380068P1DRHMJ8KU70 Classification: Additional regulated information required to be disclosed under the laws of the United Kingdom.
Yahoo
18-06-2025
- Business
- Yahoo
Stock Market News for Jun 17, 2025
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
18-02-2025
- Business
- Bloomberg
BP Is a Symbol of the British Boardroom Disease
Elliott Management Corp.'s arrival at BP plc is at first glance an activist seeking a quick buck by reversing a hapless pivot to the energy transition. But BP's woes go beyond a recent ill-judged strategic departure. The oil major also typifies the ugly side of the UK's FTSE-100 index members, characterized by poor governance, a failure to deploy capital wisely and the overgenerous distribution of cash to shareholders. BP's attraction to a hedge fund like Elliott is a low share price that's susceptible to improvement with some obvious fixes. The company's £75 billion ($94 billion) valuation is below the sum of its constituent parts as valued by analysts; the stock trades less richly than peers on conventional industry yardsticks.
