Oil giant BP quietly steps out of the takeover spotlight
The British oil and gasoline company BP (British Petroleum) sign is depicted on July 29, 2024 in Warsaw, Poland.
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Five months ago, British Energy Major BP The Prime Minister was strictly on the agenda as a candidate. Now, not too much.
The oil giant shares listed in London climbed more than 32% since the beginning of April and performed better than most US and European competitors.
The healing emotion can be attributed to a number of factors, including BP’s basic strategic reset, a challenge of leadership, progress in the cost -reduction program, and the latest oil discoveries.
It is a definite contrast at the beginning of the year, when BP found that it was the subject of intense acquisition speculation with its British rival. ShellUAE Petroleum Giant Adnoc and US departments Exxon Mobile And Knight Possible suitors among all names.
BP CEO Murray Auchincloss insisted that the company focused on growth when asked last month: “This will increase the share price for the stock.”
The shell was rapidly rejected in its name reports In late June, early stage negotiations were held to buy BP. At that time, the company said that there was no intention of making a bid -breaking bid for his challenging opponent.
Allen Good analyst in Morningstar, Allen Good, said that the company is not sure of the merit of the speculation of acquisition from the beginning, even when trading with a discount on its peers.
“Since then, stocks have been better,” he said to CNBC. “And probably the last catalyst was the selection of a new chair from CRH and who had previously experienced meaningful feedback and success.”
BP shares since April 11.
Following a green strategy, the U -turn of the year announced that he was appointed as the new president of Albert Manifold in July. Since then, the former boss of the building material manufacturer CRH has joined the company’s board of directors since then and will officially chair it as of October 1st.
A BP spokesman was not available to comment immediately when contacting CNBC.
Oil Discoveries and Elliott’s arrival
BP’s share price coincided with some important ratings and price target upgrades. For example, Berenberg has recently raised the BP to wait for a waiting, and has raised the price target from £ 3.85 to £ 5.00 ($ 6.73), and refers to the company’s second quarter of the second quarter.
At the beginning of August, BP According to the LSEG review, a report of $ 2.35 billion of $ 2.35 billion from three months to June, used as a proxy for net profit, used as a proxy for net profit, was reported.
Shortly after these results, Auchincloss from the BP, speaking with CNBC’s “Squawk Box Europe”, emphasized the company’s latest oil and gas discoveries, emphasizing the growth potential of the company, Brazil’s discovery in the Santos Basin in the Boomerangue block, “very optimistic” was a little more than 400 kilometers and a little more than 400 kilometers.
The discovery has marked 10 of the firm since the beginning of the year and is considered a potentially important support as it continues to double in BP hydrocarbons.
Aj Bell Investment Director Russian Mold, BP’s flexibility against skepticism is interesting, and “especially the share of stock price, both the company and the oil price is defined as” mercilessly negative interpretation “, although it can be a sign, he said.
“Elliott’s coming to stock records continues to be a factor, because the activist conveys, improved cash flow, deception and improved cash refunds to shareholders, a Clarion call that seems to be listening to CNBC.
In late April, activist investor Elliott opened to the public with more than 5% share in BP, and increased the expectations that the participation could print to return to core oil and gas enterprises.
On June 19, 2025, Krakow shows a fuel pump in a car at a gas station in Poland.
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Given that Shell’s interest in taking over, Mold said that BP’s best defense for any potential aspire will be a higher share price and a improved valuation.
“The value of valuation or paid price is the ultimate referee of the investment return, and the more dump seems to be less likely, because higher values limit the opposite potential and increase the downward risks if something unexpected goes wrong.” He said.
Debt burden
However, energy analysts chosen BP’s relatively high debt burden as a potential reason for concern.
BP’s net debt was at the end of the second quarter in the first three months of the year, from approximately 27 billion dollars to 26.04 billion dollars.
“If you get a situation where oil prices are starting to fall, the most exposed to the peer group.” He said. “So, there would be something that could take this momentum off.”
