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  "documentTitle": "BP plc (BP)",
  "authorId": "23_Bluebell_Capital",
  "authorName": "Giuseppe Bivona and Marco Taricco",
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  "presentationDate": "2023-10-04 00:00:00",
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  "notes": "The slide uses a narrative of 'superficiality' vs 'substance' to frame BP's leadership decisions as failures.",
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      "text": "However, upon closer examination, BP's strategy not only leads to the likely destruction of shareholders value - to the benefit of US super-major shareholders - but also fails to advance the proposed environmental and social cause.",
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      "text": "oil and gas investment: $70 billion",
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      "text": "The picture is very similar, when looking at EV/EBITDA, where BP trades on 3.5x, a 46% discount to the average of Chevron and ExxonMobil (6.4x). This compares to an historical 11% discount in the years 2006 to 2019 and a 26% discount in the year 2019.",
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      "text": "Out of a total cumulative investment of approximately $130 billion from 2023 to 2030, BP expects to invest only about $70 billion in oil and gas, averaging $ 8.75 billion per year over the next eight years. This represents a 30% drop vs the average spends of $12.5bn per year in the previous eight years. All of this is happening in the face of expected growth in hydrocarbon demand: the IEA expects demand for oil and gas to be 5% higher in the next 8 years (2023-2030) compared to demand in the last 8 years.",
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      "text": "However, upon closer examination, BP's strategy not only leads to the likely destruction of shareholders value - to the benefit of US super-major shareholders - but also fails to advance the proposed environmental and social cause.",
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      "text": "Given the widespread superficiality (more than substance) with which environmental issues seem to be generally approached, BP under the leadership of Mr. Looney, has managed to portray itself as a champion of the environment and ecological transition.",
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      "text": "37 Source: Bloomberg data as of 03 October 2023. 38 Based on midpoint of BP guidance of $ 16-18 bn in FY2023 and $ 14-18 bn through 2030 39 Source: BP annual reports. The average of the previous eight years is calculated using upstream cash capex between 2015 and 2022. 40 Source: IEA world energy outlook 2022 (Stated Policies Scenario)",
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      "kind": "title",
      "text": "5. BP failure to advance the environmental and social cause, by pursuing an 'anti-woke' strategy.",
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