One activist investor is taking on BP, urging the oil giant to scale back green pledges

Published

10 months ago

January 30, 2024

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Partner at activist investor Bluebell calls on BP to scale back its green agenda

Activist investor Bluebell Capital Partners is pushing for BP to urgently change tack, saying it is “highly debatable” whether the oil major’s strategy of reducing fossil fuel investments in favor of clean energy has any chance of succeeding.

Giuseppe Bivona, partner and co-chief investment officer at Bluebell, on Tuesday said that the FTSE 100 energy company’s depressed share price relative to its U.S. and European peers had been “totally underwhelming” in recent years, and that it should now consider deploying capital in a “rational way.”

“This was as a result of a strategy which was intended to blindly shrink BP’s core business in oil and gas and venture in other business in clean energy where, quite frankly, it is highly debatable whether BP has any chance to succeed,” Bivona told CNBC’s “Squawk Box Europe.”

“The path to get to net zero by 2050 is very narrow, which means it is very unlikely that we are going to be at net zero in 2050. Don’t get me wrong, I’m very happy that we all — not just the oil major companies — as part of society aim toward this goal,” he added.

“But I think it is very rational for a company to make as its base case a scenario which, actually is very, very unlikely to happen. And on that front, we are not asking BP to renege on its strategy, but to adapt its strategy to the reality.”

His comments come shortly after it was revealed Bluebell co-founders Bivone and Marco Taricco wrote a letter to BP chair Helge Lund and then-interim CEO Murray Auchincloss in October. Auchincloss has since been appointed as permanent CEO of the British oil and gas major.

Bluebell’s letter, which was first reported on by the Financial Times on Monday, said that BP’s investment strategy assumed a “drastic decline in oil and gas demand, which we consider to be utterly unrealistic.”

In response to the publication of the letter, a spokesperson for BP said the company “welcomes constructive engagement” with its shareholders.

A general view of the BP logo and petrol station forecourt sign on January 22, 2024 in Southend, United Kingdom.

John Keeble | Getty Images News | Getty Images

“We have met with most of our major shareholders recently and continue to receive support for our strategy. We continue to make significant progress, remain focused on delivery, and are confident the strategy will grow the value of bp and deliver sustainable long-term value for shareholders,” BP said.

Bivona declined to disclose Bluebell’s stake in BP, saying that it was below a reporting threshold. The relatively small but influential London-based firm, which focuses on large cap European equities, has previously mounted campaigns against French food company Danone and mining giant Glencore.

‘Clear admission’ of a strategic mistake

Under the leadership of Bernard Looney, who resigned in September after less than four years on the job, the oil major had promised that its overall emissions would be 35% to 40% lower by the end of the decade.

The firm, which was one of the first energy giants to announce plans to cut emissions to net zero “by 2050 or sooner,” watered down these climate plans last year.

It said on Feb. 7 that the firm would instead target a 20% to 30% cut, noting that it needed to keep investing in oil and gas to meet demand.

Bluebell’s Bivona said last year’s announcement was a “clear admission” of a strategic mistake and another adjustment was now needed.

“I’m very glad for the discussion we are having with BP, which anyway is listening and is proving to be a company willing to constructively engage with all of their shareholders,” Bivona said.

Shares of BP were slightly higher on Tuesday afternoon in London. The company is scheduled to release its fourth-quarter and full-year 2023 results on Feb. 6.

Environment

What makes a Honda a Honda? Prologue engineers help us find out!

Published

5 hours ago

November 16, 2024

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What makes a Honda a Honda? Prologue engineers help us find out!

On today’s informative episode of Quick Charge, we’ve got Honda engineers Jason Hwang and Emilio Sanchez to talk us through some of the things that make the GM Ultium-based Honda Prologue EV feel like a real Honda, and why that matters.

Jason and Emilio talk about some of the choices they made to make the Honda Prologue and Acura ZDX feel different from its GM-branded cousins, and explain why this was much more than a case of badge-engineering. Give it a listen, then let us know what you think of the Prologue and ZDX in the comments.

Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations site wide. Learn more by clicking here.

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The Eastern US’s first CFI-funded EV charging hub comes online

Published

8 hours ago

November 15, 2024

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The Eastern US's first CFI-funded EV charging hub comes online

CF EV charging — Photo: Joint Office of Energy and Transportation

The first EV charging hub funded by the Charging and Fueling Infrastructure (CFI) Program in the Eastern US is now online in Deerfield, Massachusetts.

The town installed the region’s first DC fast chargers (four ports), along with four Level 2 chargers, at 59 North Main Street in South Deerfield.

These new charging stations, funded with $2.46 million from the CFI program, are conveniently located near Interstate 91 in Franklin County, the most rural county in Massachusetts, which serves drivers from Connecticut up to the Canadian border.

The hub also features local and regional bus stops and designated bike lanes with secure onsite bike racks. The chargers are meant to cater to everyone: from local residents and visitors to municipal EVs and commercial vehicles that service the region’s businesses, like those in food and beverage manufacturing.

Gabe Klein, executive director of the Joint Office of Energy and Transportation, sees this as a model for future projects:

Multi-modal charging hubs in communities are key to giving more people the choice to ride and drive electric. The Town of Deerfield is showing leadership in building out convenient charging infrastructure that brings new transportation choices to rural and disadvantaged communities while supporting local commerce.

In recent years, Deerfield has experienced increased climate change-driven flooding from nearby rivers, including the Deerfield River, the Connecticut River, and the Bloody Brook. The project incorporates environmental engineering designed to mitigate and adapt to the effects of flooding and climate, including the installation of permeable asphalt and rain gardens, planting of native trees, grasses, and shrubs, and the creation of new greenspace in the center of Deerfield.

The Biden-Harris administration’s CFI Grant Program is expanding EV infrastructure nationwide. It offers grants for projects that complement and expand upon the initiatives of the NEVI program in urban, rural, and disadvantaged and low-income communities. So far, the CFI Grant Program has allocated over $1 billion to nearly 100 projects across the US, encouraging private investments and expanding the EV charging network to make EV ownership more practical and convenient.

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Environment

Kia’s new low-cost EV4 was just spotted in the US for the first time

Published

9 hours ago

November 15, 2024

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Kia's new low-cost EV4 was just spotted in the US for the first time

Kia’s upcoming EV4 electric sedan was just spotted testing in the US for the first time. The low-cost EV is expected to make its big debut by the end of the year. Here’s a look at the new model.

The EV4 will round out Kia’s new “EVs for all” master plan launched last year. Kia showcased three new models, the EV3, EV4, and EV5, during its first annual EV Day in October 2023.

During the event, Kia outlined its new global strategy to “lead and accelerate the EV revolution” with a wide range of models priced from $30,000 to $80,000.

Kia plans to rapidly expand its lineup with a series of smaller, lower-priced models. It launched the EV9, its first three-row electric SUV, which is already proving to be a hot seller in the US. Starting at under $55,000, the EV9 is still a great deal compared to others in its class, but Kia plans to go even lower.

The EV3 and EV4 are expected to be among the most affordable electric vehicles when they arrive in the US.

Kia’s new EV4 is now testing in the US

Ahead of its official debut, Kia’s new EV4 sedan was recently caught driving on US streets for the first time.

The latest image from KindelAuto doesn’t reveal much more than what’s been shown in the past, but the fact that it’s now testing in the US is significant.

Kia EV4 caught on US streets for the first time (Source: KindelAuto)

Kia’s EV3 is already on sale in Korea, starting at around $30,000 (42.08 million won). Earlier this week, the company said its new compact SUV is now available across Europe, starting at around $38,000 (36,000 euros) with a “segment-leading range” of up to 375 miles (WLTP).

Next up will be the EV4. Kia is expected to officially reveal the new EV by the end of the year, with deliveries starting in 2025. It could be as soon as next week at the 2024 LA Auto Show.

The interior will feature Kia’s advanced new ccNC infotainment system with dual 12.3″ navigation and driver display screens. An otherwise minalimalistic design is expected inside.

Kia’s EV4 will also be available in a hatchback variant. Although the hatch is likely aimed at European buyers, it was also recently spotted testing in the US for the first time.