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  "documentTitle": "BP plc (BP)",
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  "authorName": "Giuseppe Bivona and Marco Taricco",
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  "presentationDate": "2023-10-04 00:00:00",
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  "notes": "This slide continues a numbered list of arguments (vii and viii) and includes detailed footnotes regarding valuation data and board member qualifications.",
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      "text": "We really struggle to see which Director has the professional capability to oversee these complex investment decisions.",
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      "text": "(vii) It remains to be understood what the advantage would be for BP's shareholders, who can easily diversify directly into sectors such as renewables and energy infrastructure, where every euro of EBITDA is valued at multiples of 9x EV/EBITDA29, which are more than double where BP is currently trading.",
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      "kind": "paragraph",
      "text": "infrastructure (i.e., EV Charging), introduces a clear source of share price underperformance, provided that the market values a diversified group of businesses and assets at less than the sum of its parts.",
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      "text": "We really struggle to see which Director has the professional capability to oversee these complex investment decisions. Without taking any view on the quality of any individual Director, it is difficult to ascertain what skills the six new Directors, who joined the Board at the last three AGMs, bring to oversee the radical change of capital allocation.",
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      "text": "We very much doubt that knowledge/capabilities in insurance, software/IT, consumer staples, banking, oil and gas or utilities networks are going to be more valuable to the Board of BP, than knowledge/capabilities in renewable power or hydrogen, when it comes to overseeing the execution of the updated capital allocation of BP.30",
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      "text": "(viii) BP embarked on a massive life-time transformational capital deployment into new sectors ($45bn of capital to be invested in Renewables & Power, Hydrogen and Bioenergy over the 2023-2030) without adjusting the composition of its Board, to properly oversee it.",
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      "text": "29 Source Bloomberg data as of 03/10/2023. Listed pure play renewable power generation EDPR and Orsted trade at an average 10x EV/Ebitda 12m fwd.",
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      "text": "30 We appreciate Mr Teyssen has been CEO of the German utility E.ON but renewable power generation was a small part of E.ON business... We also note that Ms Rosput Reynolds had some exposure to power generation during her role as CEO of Duke Energy Power Services.",
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