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BP in 2020 set out its ambition to become a net zero company “by 2050 or sooner.”

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Shares of BP rose 6% on Tuesday after the oil giant accelerated the pace of its buybacks and increased its dividend, despite a drop in annual profit.

The energy major increased the pace of its share repurchases, announcing intentions to execute a $1.75 billion share buyback prior to reporting first-quarter results. The company said it was committed to announcing a $3.5 billion share buyback for the first half of the year.

BP also announced a dividend per ordinary share of 7.27 cents for the final three months of 2023, marking a 10% increase compared to the same period in the previous year.

The oil giant posted underlying replacement cost profit, used as a proxy for net profit, of $13.8 billion for 2023, a steep fall from a record $27.7 billion in the previous year. Analysts had anticipated net profit of $13.9 billion for full-year 2023, according to an LSEG-compiled consensus.

BP declared fourth-quarter net profit of nearly $3 billion, beating analyst expectations of $2.6 billion.

As London-listed stock of the oil major soared toward the top of the pan-European Stoxx 600 index on Tuesday morning, analysts at RBC Capital Markets described BP’s commitment to share buybacks beyond the first quarter of 2024 as a “welcome positive surprise.”

They added that BP’s plan to execute share buybacks of at least $14 billion through 2025, subject to maintaining a strong investment grade rating, was likely not expected by the market.

“With BP putting out 2025 specific EBITDA targets, which are also above consensus expectations, the commitment on the payout front shows confidence in future delivery, we think,” RBC Capital Markets said in a research note. EBITDA refers to earnings before interest, taxes, depreciation and amortization.

‘Real momentum’

“Looking back, 2023 was a year of strong operational performance with real momentum in delivery right across the business,” BP CEO Murray Auchincloss said in a statement.

“We are confident in our strategy, on delivering as a simpler, more focused and higher-value company, and committed to growing long-term value for our shareholders.”

BP said it’s fourth-quarter results reflected strong gas trading and “significantly lower” industry refining margins. Net debt for the period stood at $20.9 billion at the end of the 2023, compared with $21.4 billion at the end of 2022.

British rival Shell on Thursday reported stronger-than-anticipated full-year profits, announcing a 4% increase to its dividend and a fresh $3.5 billion share buyback program.

In the U.S., Exxon Mobil and Chevron both beat quarterly earnings expectations, although their results also fell sharply compared to a year ago amid weaker fossil fuel prices.

Strategy

BP’s latest results come as the company faces pressure from one activist investor over its strategy.

In a letter to BP Chair Helge Lund and then-interim CEO Murray Auchincloss in October, Bluebell Capital Partners urged the company to ramp up its oil and gas investments and reduce spending on clean energy. The letter was first reported by the Financial Times last week.

Bluebell Capital’s Giuseppe Bivona has since expressed his frustration with BP’s “totally underwhelming” share price performance relative to the firm’s U.S. and European peers. Bivona told CNBC’s “Squawk Box Europe” on Jan. 30 that BP should consider deploying its capital in a “rational way.”

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

BP has also contended with a mediatized leadership change. The company appointed Murray Auchincloss as permanent CEO last month, roughly four months after his predecessor Bernard Looney resigned after less than four years on the job.

Under Looney’s leadership, BP promised 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. BP said almost a year ago that it would instead target a 20% to 30% cut, noting that it needed to keep investing in oil and gas to meet demand.

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Win your dream EV in Climate XChange’s 9th annual raffle!

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3 hours ago

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November 16, 2024

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Win your dream EV in Climate XChange's 9th annual raffle!

Climate XChange

Climate XChange’s 9th Annual EV Raffle is your chance to win the electric car of your dreams – from Rivian to Tesla to Porsche and more!

But don’t wait, because there are only 5,000 tickets available!

Imagine getting to custom order your perfect EV, with every detail just the way you want it, up to $120,000, and with all taxes covered. That’s what the Grand Prize Winner gets to do – and you could be that winner.

How it works

Climate XChange

Enter at CarbonRaffle.org/Electrek. Every ticket you buy is one entry to win. Climate XChange is only selling 5,000 tickets, which means your odds are better here than most internet sweepstakes! Plus, you can feel good knowing your ticket supports an amazing cause: pushing for state-level climate action and advancing the transition to a zero-emissions economy.

The prizes

  • Grand Prize: Custom-built EV of your choice, valued up to $120,000, with all taxes covered.
  • 2nd Place: $12,500 cash.
  • 3rd Place: $7,500 cash.
  • Early Bird Prize: Buy your ticket before December 31, 2024, and you’ll also be entered to win $10,000 on January 3, 2025.

That’s two drawings for the price of one ticket – and four chances to win big!

Why enter?

Climate XChange

Climate XChange has been making dreams come true for nearly a decade. Last year’s winner drove off in a custom red Tesla Model X Plaid, and you could be next! Climate XChange takes fairness seriously: It prints every raffle ticket stub and live-streams the entire drawing process, ensuring transparency. Independent auditors oversee everything, so you know the drawing is legit.

Who is Climate XChange?

Climate XChange (CXC) is a nonpartisan nonprofit working to help states transition to a zero-emissions economy. It advances state climate policy through its State Climate Policy Network, connecting over 15,000 advocates and policymakers, and through its State Climate Policy Dashboard, a leading data platform for tracking climate action across the US.

Get your ticket today

Visit CarbonRaffle.org/Electrek to grab your ticket. Limited tickets are available – remember, Climate XChange is only selling 5,000 tickets – so don’t miss your shot at an electric future!

Climate XChange EV Raffle rules summary

  • Must be 18 or older to enter.
  • Tickets are available at CarbonRaffle.org/Electrek.
  • Only 5,000 tickets will be sold.
  • Early Bird Drawing on January 3, 2025.
  • Grand Prize Drawing on February 28, 2025.

All proceeds support Climate XChange’s work to push for ambitious climate policy – so even if you don’t win, you’re still making a difference.

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Environment

China’s 3GW Gobi Desert solar farm can power 2 million households

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5 hours ago

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November 16, 2024

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China's 3GW Gobi Desert solar farm can power 2 million households

Gobi Desert solar farm

China just connected its largest single-capacity solar farm built on a former coal mining area, which is in the Gobi Desert, to the grid.

The Mengxi Blue Ocean Photovoltaic Power Station, located in Otog Front Banner, Ordos, Inner Mongolia, came online on November 5. With a massive installed capacity of 3 gigawatts (GW) and over 5.9 million solar panels, the plant will generate around 5.7 billion kilowatt-hours of electricity annually – enough to power 2 million households.

This huge project will save about 1.71 million tons of standard coal each year and cut carbon dioxide emissions by roughly 4.7 million tons, which is equivalent to planting 62,700 hectares (around 155,000 acres) of trees.

Built on coal mining subsidence land, Mengxi Blue Ocean is part of China’s national West-East Electricity Transfer Project, which brings investment and development to western China west while supplying the growing need for electricity in the eastern provinces.

The solar farm includes the country’s first large-scale outdoor solar testing base in the Gobi Desert climate, demonstrating the potential for large solar installations in challenging environments.

The power station makes use of new rare earth alloy grounding materials, cutting costs by 40%. It also replaces traditional concrete foundations with steel to minimize impact on the local grassland ecosystem.

Chuang Xihong, deputy director of the Engineering Construction Department of Guodian Power Group, CHN Energy’s parent company, explained that Mengxi Blue Ocean is an agrivoltaic project as well [via PV Tech]:

Fine forage and sand-fixing plants are planted under the PV modules, providing grazing for Australian White Sheep and chickens. A composite ecological development model will be established where PV power generation and breeding will go hand in hand.

Read more: China powers up the world’s largest open-sea offshore solar farm

If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*

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Environment

Here’s a look inside the Three Mile Island nuclear power plant

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7 hours ago

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November 16, 2024

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Here's a look inside the Three Mile Island nuclear power plant

Operations at Three Mile Island are poised to restart in four years, the latest sign that the nuclear power industry is undergoing a major turnaround after a wave of plant closures.

The Unit 1 reactor at Three Mile Island, which entered service in 1974, was permanently shut down in 2019 due to economic pressure as nuclear power struggled to compete against natural gas. But the tech sector’s growing power needs are breathing new life into the industry.

Constellation Energy plants to restart Unit 1 in 2028 through an agreement with Microsoft to help power the tech company’s data centers. The plant will be renamed the Crane Clean Energy Center — after Chris Crane, the late CEO of the plant’s former owner, Exelon — and its restart is subject to approval by the Nuclear Regulatory Commission.

The Department of Energy said Unit 1 operated safely and efficiently before being shut down five years ago. However, it lies within walking distance of the site of the worst nuclear accident in U.S. history. The Unit 2 reactor suffered a partial meltdown in 1979 and has not operated since the accident. It is being decommissioned by its owner, Energy Solutions.

Constellation’s chief generation officer, Bryan Hanson said Unit 1 is in good condition and the restoration will mostly involve typical maintenance work.

Here is a look at the plant’s main control room, the turbine deck that houses the main power generator, and the facility’s iconic cooling towers. For more on the restart click here.

Main control room

The control panel in the main control room of the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.

Danielle DeVries | CNBC

Constellation’s chief generation officer, Bryan Hanson, inside the main control room of the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.

Danielle DeVries | CNBC

Telephones in the main control room of the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.

Danielle DeVries | CNBC

Part of the main control room of the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.

Danielle DeVries | CNBC

Part of the main control room of the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.

Danielle DeVries | CNBC

Turbine deck

Part of the turbine deck of the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.

Danielle DeVries | CNBC

Part of the turbine deck of the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.

Danielle DeVries | CNBC

Electrical panels on the turbine deck of the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.

Danielle DeVries | CNBC

Part of the turbine deck of the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.

Danielle DeVries | CNBC

A desk on the turbine deck of the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.

Danielle DeVries | CNBC

Cooling towers

A detail of two cooling towers at the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.

Danielle DeVries | CNBC

Power lines and a cooling tower at the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.

Danielle DeVries | CNBC

Detail of a cooling tower at the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.

Danielle DeVries | CNBC

Cooling towers at the Three Mile Island nuclear power plant in Middletown, Pennsylvania, Oct. 30, 2024.

Danielle DeVries | CNBC

— CNBC’s Danielle DeVries contributed to this report.

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