Connect with us

Published

on

Annual profits at BP have halved but the oil and gas major has moved to woo disgruntled shareholders with a surge in rewards.

The company recorded underlying replacement cost profits – the company’s preferred measure – of £13.8bn (£11bn) during 2023.

That was down from the record $27.7bn (£22.1bn) sum achieved in 2022 largely due to lower oil prices.

But the figure was aided by a better than expected performance in the final quarter – boosted by stronger than anticipated gas trading.

Money latest: Eight million households to get final £299 payment from today

It helped the FTSE 100 firm reveal a 10% rise in its dividend for the three-month period to almost 7.3 cents per share.

A share buyback of a further $3.5bn will take place over the first half of 2024, the company said, adding that buybacks worth at least $14bn were planned over 2024-25.

More from Business

BP is under pressure to keep its shareholders happy as its stock has lagged growth seen by rivals, including Shell.

Sky News has previously reported how its plans for the transition to clean energy were not universally welcomed by investors.

According to the Financial Times, a number of activist investors are demanding the company rows back on its plans.

Shares were up 6% in the wake of BP’s update.

Please use Chrome browser for a more accessible video player

What happens to fossil fuel jobs?

BP said it was committed to its strategy under new chief executive Murray Auchincloss, who was confirmed in the role on a permanent basis last month.

He was initially appointed interim CEO after the sudden departure of the architect of BP’s push for the transition towards a green future, Bernard Looney.

He was forced out in September after misleading BP’s board about personal relationships with colleagues.

Mr Auchincloss told investors: “Looking back, 2023 was a year of strong operational performance with real momentum in delivery right across the business.

“And as we look ahead, our destination remains unchanged… focused on growing the value of BP.”

Read more from Sky News:
Police ‘not able to progress’with almost all CBI scandal allegations
‘Lacklustre’ January for retailers with weather and money pressures blamed

As ever with energy company profits, there was a backlash from critics.

Campaign group Global Witness described the shareholder rewards as “reckless”, saying the money would be better spent on securing zero emissions.

That assessment was echoed by the IPPR thinktank.

Its researcher, Joseph Evans, said: “BP has decided to prioritise its shareholders over investing in the green transition.

“With profits down on last year, you might expect BP’s executives to be looking for profitable investments in the growing industries of the future, like renewable energy.

“Instead, they’ve chosen to enrich their investors. It’s clear that BP and other fossil-fuel giants can’t be trusted to drive the green transition.”

Continue Reading

Business

Ex-Post Office head of IT says Paula Vennells ‘hoped to avoid’ inquiry – and reveals she blocked her number

Published

on

By

Ex-Post Office head of IT says Paula Vennells 'hoped to avoid' inquiry - and reveals she blocked her number

A former Post Office executive has said she was forced to block ex-boss Paula Vennells’ phone number after the ex-CEO called multiple times asking for help to avoid an independent inquiry into the Horizon IT scandal.

Lesley Sewell, previously the company’s head of IT, told the Post Office inquiry on Thursday that former CEO Ms Vennells had reached out to her four times between 2020 and 2021.

Ms Sewell said that she blocked Ms Vennells’ number due to discomfort with the contact.

In her witness statement to the probe, Ms Sewell said that one of Ms Vennells’ emails referenced the need to fill in memory gaps regarding Horizon and “Project Sparrow”, a committee addressing issues with forensic accountants who identified flaws in the accounting system.

“Paula contacted me on four occasions in total. I recall blocking her number after the last call as I did not feel comfortable with her contacting me,” Ms Sewell said.

“I had not spoken to Paula since I had left POL [Post Office Limited] in 2015.”

Lesley Sewell giving evidence to the Post Office inquiry. Pic: PA
Image:
Lesley Sewell giving evidence to the Post Office inquiry. Pic: PA

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

According to Ms Sewell’s testimony, former chief executive Ms Vennells said that she had “been asked at short notice” to appear before a parliamentary select committee on “all things Horizon/Sparrow and need to plug some memory gaps”.

More on Paula Vennells

Ms Sewell says Ms Vennells added: “My hope is this might help avoid an independent inquiry but to do so, I need to be well prepared.”

Ms Sewell, who struggled to contain her emotions and broke down in tears while giving her oath at the start of her inquiry evidence, was offered support and breaks as needed by chairman Sir Wyn Williams.

Sir Wyn told the former executive: “Ms Sewell, I appreciate this may be upsetting for you, Ms Price will ask you a number of questions in a proper and sensible manner, but if at any time you feel you need a break, just let me know, all right?”

Lesley Sewell taking the oath at the Post Office inquiry. Pic: PA
Image:
Lesley Sewell taking the oath at the Post Office inquiry. Pic: PA

The Post Office has faced significant scrutiny following the ITV drama Mr Bates Vs The Post Office which highlighted the Horizon IT scandal.

The faulty system led to the prosecution of more than 700 sub-postmasters between 1999 and 2015, with many still awaiting full compensation despite government announcements regarding payouts for those with quashed convictions.

Continue Reading

Business

London City Airport lands FitzGerald as first female boss

Published

on

By

London City Airport lands FitzGerald as first female boss

London City Airport will on Thursday name its first permanent female chief executive as it targets approval of an expansion plan that would create nearly 1,500 jobs.

Sky News understands that the Docklands airport has told staff that Alison FitzGerald, who has been co-CEO since January alongside finance chief Wilma Allan, has landed the role.

Ms FitzGerald has worked at City Airport – the capital’s fourth-busiest – for more than a decade, becoming chief information officer and then chief operating officer.

London City Airport 3
Image:
A woman wearing a face mask walks by London City Airport, which suspended its operations during the pandemic

She replaces Robert Sinclair, who left in January after six years to become boss of the High Speed 1 rail link.

The airport is owned by a consortium of Canadian pension funds and Kuwait’s sovereign wealth fund, which have backed a plan to increase its annual passenger traffic from about 6.5m to 9m.

It is appealing against Newham Council’s rejection of a planning application that would see it extend operating hours at the site, which is popular with City commuters.

The airport’s proposals include no increase in the annual number of flights and, in what it claims is a first for a UK airport, a commitment that only cleaner, quieter, new generation aircraft will be allowed to fly in any extended periods.

More from Business

London City Airport 1
Image:
The runway at London City Airport

The appeal is being reviewed by the Independent Planning Inspector.

Its change of leadership makes London City the second of the capital’s airports to name a new CEO in quick succession, following the arrival at Heathrow of Thomas Woldbye last year.

“London City delivers one of the best passenger experiences in the UK and I’m committed to building on this success even further,” Ms FitzGerald said.

Continue Reading

Business

Thames Water investors to quit boards amid spectre of bailout

Published

on

By

Thames Water investors to quit boards amid spectre of bailout

Representatives of Thames Water’s multinational syndicate of shareholders are poised to quit as directors of its corporate entities after refusing to inject the billions of pounds of funding required to bail it out.

Sky News has learnt that a number of board members at companies connected to Kemble Water Finance, Thames’s parent, are expected to resign in the coming days.

City sources described the move as “the logical next step” after the owners of Britain’s biggest water utility said they would not commit more than £3bn to help upgrade its ageing infrastructure and shore up its debt-laden balance sheet.

A default on part of Thames Water‘s holding company debts last month has raised the prospect that the company is heading towards special administration, a form of insolvency that would effectively leave the government liable for managing a utility firm which serves nearly a quarter of Britain’s population.

Money latest:
Rainy day for iconic British brand as profits suffer

Please use Chrome browser for a more accessible video player

Thames Water under threat

Thames Water is owned by a group of sovereign wealth funds and pension funds from countries including Abu Dhabi, Australia, Britain, Canada and China.

A number of the investors are represented on boards which sit at various points in the group’s labyrinthine capital structure.

It was unclear on Wednesday whether Michael McNicholas, a representative of the giant Canadian pension fund Omers and who sits on the board of Thames Water Utilities Limited, was among those in the process of stepping down.

Read more:
Directors hold crunch talks over utility’s future
Even bigger surge in bills proposed under new plans

Along with the rest of the privately owned water industry, Thames Water faces a crucial moment next month when Ofwat, the industry regulator, publishes its draft determination on companies’ five-year business plans.

The draft rulings will be subject to negotiation before final versions are published in December.

Thames Water and a spokesman for Kemble declined to comment.

Continue Reading

Trending