From what I can see, the likes of Enel and Iberdrola are more like utility
companies with an established and guaranteed customer and profit base from
supplying domestic and industrial energy. Their edge is that they are
installing and controlling the source of some of this energy and thus profiting
from the total supply chain.
This is very much what the likes of BP does for oil and gas - exploring,
producing, refining, distributing and retailing and thus maximising profits.
BP are very switched on in the technical department and if they have the
corporate desire to expand into renewables that I reckon they will do it well.
The market caps and not dissimilar but that of BP is maybe 50% depressed. It
would be interesting to see the revenue and free cash figures to compare but I
still think any calls to sell our BP holding are wrong because I believe it
will recover ; it may take 6 or 12 months for world markets and oil demand to
recover but I think it is worth sitting it out rather than crystallizing a
hefty loss by selling.
But I would fully agree with further investment in renewables ( we have Simec
!)
Peter C.
-----Original Message-----
From: Richard Soar <dmarc-noreply@xxxxxxxxxxxxx>
To: wvic@xxxxxxxxxxxxx
Sent: Mon, 14 Sep 2020 10:32
Subject: [wvic] Re: On BP, from the Economist
Thanks Nick
It will be interesting to see what BP have to say in the next few days and we
can chat about this tonight.
The chart of course does not compare like with like - an oil company trying to
reinvent itself v. renewable energy companies which of course are doing well at
the moment as we saw in our investment and exit from Solaredge Tech earlier in
the year.
We have lots of cash at the moment and I would strongly support another
investment in renewables in our portfolio.....I quite like The Renewables
Infrastructure Group, but there are lots of options out there....
https://www.trig-ltd.com/#
Richard
Sent from my iPad
On 14 Sep 2020, at 08:05, Nicholas Gallop <nsgallop@xxxxxxxxx> wrote:
In advance of tonight’s meeting:
| Beyond petroleum: for real this time | |
| | | |
| | BP today kicks off three days of presentations to describe its new
strategy. In August the giant oil-and-gas company announced it would start to
ditch oil and gas. BP said that its hydrocarbon production would fall by 40% by
2030 and its low-carbon investments would rise tenfold. Other large oil
companies have set targets for curbing emissions, but BP’s shift is by far the
most dramatic plan of any supermajor. In a sign of what may be to come, on
September 10th it said it would work with Equinor, Norway’s state-owned oil
company, to develop offshore wind farms in America. But BP faces new rivals. As
investors have fled oil-and-gas companies, they have rewarded European
utilities such as Enel, Iberdrola and Orsted, which have become leaders in
developing wind and solar in Europe and beyond. BP will this week try to
convince investors that it can compete. | |
| | | |
| | | |
| |
Nick Gallop+44 (0)7867 808 872
nick.gallop on Skype
