BP Considering Exit from Part or All of North Sea Operations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy BP?
BP is considering potentially exiting part or all of its operations in the North Sea, people familiar with the matter told Bloomberg's Dinesh Nair and Mitchell Ferman. BP is conducting an internal review of its upstream operations in the United Kingdom, which could fetch about GBP 2B in a full divestment, according to the sources. A representative for BP declined to comment, Bloomberg noted.
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Analyst Views on BP
Wall Street analysts forecast BP stock price to rise
11 Analyst Rating
5 Buy
5 Hold
1 Sell
Moderate Buy
Current: 46.940
Low
6.38
Averages
84.26
High
503.69
Current: 46.940
Low
6.38
Averages
84.26
High
503.69
About BP
BP p.l.c. is a United Kingdom-based integrated energy company. Its segments include Gas & low carbon energy, Oil production & operations, Customers & products, and Other businesses & corporate. The gas & low carbon energy comprises regions with upstream businesses that predominantly produce natural gas, gas marketing and trading activities and its solar, wind and hydrogen businesses. The oil production & operations segment comprises regions with upstream activities that predominantly produce crude oil, including bpx energy. The customers & products segment comprises its customer-focused businesses, which include convenience and retail fuels, electric vehicle (EV) charging, as well as Castrol, aviation and business-to-business (B2B) and midstream. It also includes its products businesses, refining and oil trading, as well as its bioenergy businesses. The other businesses and corporate also comprises the Company's shipping and treasury functions, and corporate activities worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- BP's Doubling Profits: BP's first-quarter earnings more than doubled year-over-year, primarily driven by rising oil prices that offset supply disruptions, demonstrating a marked improvement in corporate profitability in a high oil price environment.
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See More
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- Financial Risk Consideration: Despite benefiting from rising oil prices, BP's debt-to-equity ratio is more than twice that of its peers, highlighting its high financial leverage, prompting investors to carefully assess the long-term risks and rewards associated with the company.
- Industry Outlook Analysis: With escalating geopolitical conflicts in the Middle East, the energy market may benefit from high oil prices in the short term; however, history shows that commodity prices will eventually decline, leading investors to focus on financially robust integrated energy companies to navigate future market fluctuations.
See More
BP Considers Exit from UK North Sea Operations
- Asset Disposal Strategy: BP is conducting an internal review to consider a full or partial exit from its UK North Sea operations, with a potential divestment expected to generate around £2 billion ($2.7 billion), aiding in debt reduction efforts.
- Competitive Industry Pressure: As peers like Chevron and ConocoPhillips have sold off assets, BP remains one of the last major oil companies operating in the UK North Sea, which may intensify competitive pressures in the market.
- Ongoing Divestment Approach: Over the past few years, BP has been gradually reducing its presence in the region, including selling its interest in the Shearwater field to Shell and the Forties pipeline system to Ineos, reflecting its commitment to strategic transformation.
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See More
