Bernard Looney, BP’s chief executive, promised investors the oil and gas giant could adapt to a low-carbon future while delivering returns of 8 per cent to 10 per cent. AP
Bernard Looney, BP’s chief executive, promised investors the oil and gas giant could adapt to a low-carbon future while delivering returns of 8 per cent to 10 per cent. AP
Bernard Looney, BP’s chief executive, promised investors the oil and gas giant could adapt to a low-carbon future while delivering returns of 8 per cent to 10 per cent. AP
Bernard Looney, BP’s chief executive, promised investors the oil and gas giant could adapt to a low-carbon future while delivering returns of 8 per cent to 10 per cent. AP

BP drops to 25-year low a week after unveiling climate strategy


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BP watched its share price drop to a 25-year low, just a week after revealing its plan to turn itself into a clean-energy giant.

Chief executive Bernard Looney and his new management team gave more than 10 hours of presentations over three days last week, in a bid to show the world that the oil and gas giant could adapt to a low-carbon future without sacrificing returns.

BP’s stock closed in London on Thursday at 232.4 pence, the lowest level since October 1995. While falling crude prices and fears of the second wave of the coronavirus didn’t help, the slide suggests shareholders weren’t convinced by Mr Looney’s pitch.

“Investors remain sceptical,” said Mirza Baig, global head of governance at Aviva Investors. “Particularly as this move is being forced on the company by climate change.”

Mr Looney took over as chief executive in February, but the so-called “BP Week” this month was his big moment, designed to put flesh on the bones of a bold plan to become a net-zero energy company by 2050.

It was also an opportunity to persuade shareholders to stick with BP after the company slashed its dividend by half in August.

“What investors are looking for with companies, when they announce big strategic changes of direction of any sort, is compelling answers to three questions: The what, the why and the how?” said Nick Stansbury, a fund manager at Legal & General Group.

At the heart of BP’s reinvention is a reduction in oil and gas production and simultaneous growth in its renewables business.

Mr Looney promised investors he could do this while delivering returns of 8 per cent to 10 per cent. That’s not as high as the double-digit returns oil developments can sometimes bring in, but greater than many clean-energy projects.

Mr Looney talked about BP’s experience, integration, low borrowing costs and trading prowess, but the market is likely to remain sceptical until such returns can be demonstrated in practice, analysts at Redburn wrote in a research note.

“BP’s challenge lies in the building up of its skill set in renewable energy solutions and a competitive advantage in its chosen areas that allows investors to believe they can deliver attractive financial returns from the capital allocated,” said Mr Baig, who strongly supported the company’s net-zero ambition.

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Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
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MATCH INFO

Serie A

Juventus v Fiorentina, Saturday, 8pm (UAE)

Match is on BeIN Sports

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

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GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

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Blackpink World Tour [Born Pink] In Cinemas

Starring: Rose, Jisoo, Jennie, Lisa

Directors: Min Geun, Oh Yoon-Dong

Rating: 3/5

Company%20Profile
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Gremio 1 Pachuca 0

Gremio Everton 95’

COMPANY%20PROFILE
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Stage 2

1. Mathieu van der Poel (NED) Alpecin-Fenix 4:18:30

2. Tadej Pogacar (SLV) UAE Team Emirates 0:00:06

3.  Primoz Roglic (SLV) Jumbo-Visma 0:00:06

4. Wilco Kelderman (NED) Bora-Hansgrohe 0:00:06

5. Julian Alaphilippe (FRA) Deceuninck-QuickStep 0:00:08

HAJJAN
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UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
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