BP logos are seen at a BP petrol and diesel filling station southeast of London on June 15, 2020.
BEN STANSALL | AFP | Getty Images
LONDON — Oil and gas giant BP beat second-quarter earnings expectations on Tuesday, while expanding its dividend and share buyback program.
The U.K.-based energy major said it will buy back $1.4 billion of its own shares in the third quarter on the back of a $2.4 billion cash surplus accrued in the first half of the year.
It also anticipates buybacks of around $1 billion per quarter and an annual dividend increase of 4% through 2025, based on an estimated average oil price of $60 per barrel.
The energy major posted full-year underlying replacement cost profit, used as a proxy for net profit, of $2.8 billion. That compared with a loss of $6.7 billion over the same period a year earlier and $2.6 billion net profit for the first quarter of 2021.
Analysts polled by Refinitiv had expected second-quarter net profit of $2.06 billion.
The results reflect a broader trend across the oil and gas industry as energy majors seek to reassure investors they have gained a more stable footing amid the ongoing coronavirus pandemic. The British-Dutch multinational Royal Dutch Shell, France’s TotalEnergies and Norway’s Equinor all announced share buyback schemes last week.
Share prices of the world’s largest oil and gas majors are not yet reflecting the improvement in earnings, however, and the industry still faces a host of uncertainties and challenges.
Shares of BP are up almost 15% year-to-date, having collapsed roughly 47% in 2020.
BP’s financial results come after a period of stronger commodity prices. International benchmark Brent crude futures rose to an average of $69 a barrel in the second quarter, up from an average of $61 in the first three months of the year.
Oil prices have rebounded to reach multi-year highs in recent months and all three of the world’s main forecasting agencies — OPEC, the International Energy Agency and the U.S. Energy Information Administration — now expect a demand-led recovery to pick up speed in the second half of the year.
It comes after a 12 month period which BP has described as “a year like no other” for global energy markets.
In its benchmark Statistical Review of World Energy, published on July 8, BP said that over the past seven decades the company had borne witness to some of the most dramatic episodes in the history of the global energy system. These crises included the Suez Canal crisis in 1956, the oil embargo of 1973, the Iranian Revolution in 1979 and the Fukushima disaster in 2011.
“All moments of great turmoil in global energy,” Spencer Dale, chief economist at BP, said in the report. “But all pale in comparison to the events of last year.”
The ongoing Covid-19 crisis triggered a historic oil demand shock in 2020, with Big Oil companies enduring a brutal 12 months by virtually every measure. The pandemic coincided with falling commodity prices, evaporating profits, unprecedented write-downs and tens of thousands of job cuts.
Analysts told CNBC ahead of the latest batch of second-quarter earnings that while energy companies were likely to try to claim a clean bill of health, investors were expected to harbor a “tremendous degree” of skepticism about the long-term business models of oil and gas firms. This was predominantly a result of the deepening climate emergency and the urgent need to pivot away from fossil fuels.
A canton in Switzerland commissioned a project in which solar panels were attached vertically to a roadside retaining wall.
The canton of Appenzell Ausserhoden in northeastern Switzerland is aiming to generate at least 40% of its electricity from renewables by 2035. So, it exercised a little creativity and covered a roadside retaining wall with 756 glass-glass solar panels.
The panels have an output of 325 kW and an energy yield of around 230,000 kWh annually. This is equivalent to the consumption of about 52 Swiss households. The energy will be fed into the grid of energy supplier St. Gallisch-Appenzellische Kraftwerke, and the canton will get a feed-in tariff in return.
German mounting system provider K2 Systems and Swiss contractor Solarmotion installed the vertical system on the 75-degree retaining wall. The panels were anchored on a mounting rail with HUS screw anchors, and Lichtenstein-based Hilti provided mechanical dowels.
The PV system was anchored on and in the masonry using an adhesive technique. An anchoring depth of a maximum of 90 mm could not be exceeded so that the retaining wall would not be adversely affected.
Due to the close proximity to the asphalt, the solar panels’ components are subject to exceptional corrosion requirements and are anodized for protection. Indirect components are made of aluminum – only the screw anchors are made of stainless steel.
K2 Systems says that “especially in the winter months (when consumption and dependence on foreign electricity imports are at their highest), the vertically aligned modules will achieve a very good electricity yield.”
Electrek’s Take
This isn’t a big project, but it’s a delightfully creative one, which is why it caught my eye. A retaining wall is dead space, and snow will slide off the panels in Swiss winters.
We at Electrek love it when solar is installed in intelligent and inventive ways. Warehouse rooftops? Cover them. Highway medians? Canal covers? Box stores? Put solar on them. It just makes sense.
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Flying electric cars are not just for sci-fi movies. Miami-based Doroni Aerospace announced Friday its all-electric flying car, the Doroni H1, received official FAA Airworthiness Certification. And the best part – it’s designed to fit in your garage.
Doroni’s all-electric flying car gets FAA-certified
Doroni claims to be the first company to test manned flights with a 2-seater flying electric car in the US. The Doroni H1 took flight earlier this year.
CEO Doron Merdinger successfully piloted the personal electric vertical takeoff and landing aircraft (eVTOL) this summer. Merdinger said receiving the flight certification “is not just a milestone for our company, but a leap forward for the entire field of personal air mobility.”
He says the electric flying car “is poised to redefine urban transportation.” Doroni’s aircraft has already received over 370 pre-orders as the startup wraps up funding efforts.
Powered by ten independent propulsion systems, the all-electric flying car has a claimed top speed of 140 mph (100 mph cruising speed) and 60 miles range. Its unique design ensures stability during flight.
Doroni’s electric flying car (Source: Doroni)
It includes four ducts containing two e-motors with patented ducted propellers. Eight are for vertical flight with an additional “two pushes.”
The two-seater aircraft is designed to fit inside a two-car garage at 23 ft in length and 14 ft in width. It also features fast charging (20% -80%) in under 20 minutes.
Doroni’s electric flying car prototype (Source: Doroni)
Electric flying cars coming to a dealership near you
Doroni’s all-electric flying car is semi-autonomous, meaning you can guide it to different levels. A controller stick is used to push you forward, backward, or to the side.
Doroni H1 interior control stick (source: Doroni)
Who would buy one of these? Doroni says one of its customers is a doctor who wants to use the aircraft to skip traffic on their way to work. However, you will need a certification. It requires at least 20 hours of experience, 15 inside the aircraft and another five solo.
Merdinger says the biggest use case for eVTOLs will be for air taxis or ride-sharing. Doroni aims for a different market though.
Doroni electric flying car concept (Source: Doroni)
The company says there is enough space to fly everywhere, especially in suburban areas. Doroni’s all-electric flying car is designed for more than just getting you from point A to point B. It allows you to “enjoy nature,” according to Merdinger.
Doroni expects to build about 120 to 125 units by 2025 or 2026. Eventually, the Miami-based startup plans on scaling to produce 2,500 eVTOLs annually. You can learn more about the electric flying car on Doroni’s website.
(Source: Alef Aeronautics)
The company is the latest to receive the flight certification. Alef’s Model A was the first electric flying car to get certfied in June.
Alef said it had 2,500 pre-orders in July. The orders include 2,100 from individuals and 400 from businesses, including a California car dealership.
Electrek’s Take
Are electric flying cars going to take over road transportation? Not necessarily. At least not anytime soon.
Doroni and Alef are both working on niche markets, which makes the most sense for the time being. At the same time, the companies are pushing forward another sustainble means of transport.
As Merdinger explained “this is just the beginning,” as the technology advances.
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Tesla’s Cybertruck website included a revelation about a feature that wasn’t mentioned in its presentation: a “range extender,” in the form of an additional battery pack in the truck bed which expands the truck’s range.
It’s an interesting solution, and we don’t know all the details of it yet. We don’t know the cost, the weight, how it will be installed and uninstalled, or whether it even can be uninstalled.
The battery pack is intended to be used “for very long trips or towing heavy things up mountains,” according to Tesla CEO Elon Musk. It takes up about a third of the truck bed, as can be seen in a photo posted on Tesla’s Cybertruck site.
So, there’s still room for cargo, just not the full 6 feet of bed length that Tesla says the Cybertruck has.
But the fact that it was described as being used only “for very long trips or towing heavy things up mountains” suggests that it will be removable, since most people don’t do that sort of thing every single day.
Making it removable is actually a good solution, because it can lower prices, make packaging easier, and improve efficiency for vehicles that simply don’t need a ridiculously enormous 470-mile battery – and most drivers don’t need that.
And if it is removable, well, there’s already a patent on that.
An electric vehicle system for transporting human passengers or cargo includes an electric vehicle that includes a body, a plurality of wheels, a cargo area, an electric motor for propelling the electric vehicle, and a primary battery for providing electrical power to the electric motor for propelling the electric vehicle. An auxiliary battery module is attachable to the electric vehicle for providing electrical power to the electric motor via a first electrical connector at the auxiliary battery module and a second electrical connector at the electric vehicle that mates with the first electrical connector. The auxiliary battery module can be positioned in the cargo area while supplying power to the electric motor, and can be removable and reattachable from the electric vehicle. The auxiliary battery module includes an integrated cooling system for cooling itself during operation of the electric vehicle including a conduit therein for circulating coolant.
We aren’t patent lawyers here, but this sounds awfully similar to Tesla’s “range extender.” The obvious potential differences we can find are if the range extender doesn’t have integrated cooling, which is unlikely, or if the range extender isn’t removable, which doesn’t seem to jive with the statement that it is only for long trips or with the marketing showing it as an optional add-on (if that were the case, why not just offer different battery sizes?).
So next, the question is: is Tesla’s solution different enough to avoid Rivian’s patent protection? Has Tesla licensed the idea from Rivian, and we just haven’t heard about it yet? Or will Rivian return Tesla’s “good faith” and not initiate a patent lawsuit against Tesla, if it does feel like it has a good enough case to say that Tesla’s range extender infringes on its patent?
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