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Aandeel SHELL PLC AEX:SHELL.NL, GB00BP6MXD84

  • 33,850 23 apr 2024 15:47
  • -0,065 (-0,19%) Dagrange 33,815 - 34,090
  • 3.124.559 Gem. (3M) 7,6M

Sectornieuws

159 Posts
Pagina: «« 1 ... 3 4 5 6 7 8 »» | Laatste | Omlaag ↓
  1. pim f 17 juli 2016 19:30
    (2/2)

    In 2014, Shell promoted Ben van Beurden, head of refining, to chief executive. Van Beurden, 58, has more than 30 years at the company and is credited with turning Shell’s chemical operations from losses to profits. The hope is that he can make similar improvements for the broader company, improving its chronically low returns. In April 2015, with crude oil at about $60, Shell announced a $70 billion stock and cash deal for BG, a production company split out of the former British Gas—a 50% premium to the price before the deal was announced. Investors, viewing the deal as richly priced and uncertain, sent Shell shares 6% lower and BG just 27% higher. Charlie Price, who helps to oversee the $1 billion Aston/Pictet International fund (APCTX), bought BG and profited from the deal completion. He’s sticking with Royal Dutch Shell, now his largest holding. “BG is asset-rich, especially in natural gas,” he says. “Shell was asset-poor but has the infrastructure and expertise. Together, they’re the lowest-cost gas producer in the world.”

    Shell had already begun shifting its production to a higher mix of natural gas as a bet on tighter environmental regulations, while investing heavily in facilities to liquefy and transport gas to bring it from low-cost markets like the U.S. to higher-cost ones. BG adds 20% to production and 25% to total energy reserves, including coveted deposits in the Santos Basin off the coast of Brazil. These are found beneath thick layers of salt but contain high-quality oil, and, for a deepwater specialist like Shell, they can be exploited at relatively low cost.

    After the deal, valued at $53 billion at the closing, Shell is the largest gas producer and easily the largest liquefied-natural-gas, or LNG, company, and it ranks a close second to Exxon in total energy output, including oil. Close to 40% of its reserves could now be characterized as long life, according to UBS analyst Jon Rigby. That helps to reduce its need for constant reinvestment. Nearly three-quarters of Shell’s profit in a typical year comes from energy production. Much of the rest comes from refineries, a global chain of service stations, consumer products like Pennzoil motor oil, and petrochemical plants.

    LAST YEAR’S FINANCIAL RESULTS give a sense of what Shell is up against. Operating cash flow fell below $30 billion, from $45 billion in 2014. If that seems like it’s still a lot, consider that Shell’s dividend alone costs $12 billion a year, and that in 2014 the company had more than $37 billion in capital expenditures. Last year, it slashed capex to less than $30 billion and paid $2.6 billion of its dividend obligation in shares under a voluntary program. It also sold $5.5 billion worth of assets. Return on capital employed shriveled to 1.9% from 7.1%.

    Analysts can disagree over Shell’s true cost of capital, but there’s no question that the company is consistently earning well below it. That’s why investors cheered last month’s announcement of a growth plan that looks more like a shrink plan.

    Shell says capital investment will total $25 billion to $30 billion from 2017 through 2020. That’s for the two companies combined, and it represents at least a 36% cut from 2014. Asked during an analyst presentation if $30 billion was a hard figure or if it might move higher if oil rebounds, van Beurden bristled. “What comfort can I give you, basically standing here and saying it’s not more than $30 billion?” he said. “What more do you want, yeah?” Shell, he said, has resources it can exploit well into the next decade. “You don’t have to go and look for stuff to spend capital on,” he explained, or perhaps confessed. “I’m absolutely committed that it will be $30 billion.” Van Beurden declined to talk to Barron’s.

    THERE’S MORE TO SAVE. Shell says it expects the BG deal to yield $4.5 billion in yearly cost cuts and reduced exploration by 2018, up from an initial forecast of $3.5 billion. It’s targeting divestments totaling $30 billion through 2018, including $6 billion to $8 billion in the works this year. Van Beurden said the new budget is big enough to fund growth in select areas where he believes Shell has a competitive advantage. Priorities are deepwater drilling, particularly off Brazil and in the Gulf of Mexico, and chemicals; Shell last month announced it will build a vast new Pennsylvania plant to turn Eastern gas into the building blocks of plastics. These investments will be funded by other businesses that Shell calls its cash engines, including profitable wells, LNG operations, service stations, and oil-sands mining. Other businesses, such as shale and alternative energies, are categorized as future opportunities, suggesting that Shell will dabble there but not blow much cash.

    The upshot for investors is that if van Beurden’s plan works, he predicts that by 2019 to 2021 Shell can generate average free cash flow of $20 billion to $25 billion a year—not counting divestments—after meeting its capex needs, while turning in a 10% average return on capital employed. That compares with organic free cash flow of just $5 billion a year on average over the past three years. The midpoint of van Beurden’s outlook, $22.5 billion a year, would give Shell a free cash yield of 10% based on its recent stock market value. It would provide more than enough money to quickly bring down debt and keep dividends coming, as well as share buybacks.

    What could go wrong? Oil prices could remain weak for years. Shell’s plan assumes $60 oil by 2018, in line with the view of many analysts, based on production declines. The U.S. Department of Energy reckons U.S. oil production, 9.4 million barrels per day last year, will fall to 8.6 million this year and 8.2 million next year. China, too, recently cut its oil output sharply. If oil prices fail to rise, however, Shell could fall short of its free-cash-flow target, or have to settle for lower prices than it expects for its divestments. Management says the company’s back isn’t up against the wall on sales, and that the new cost structure is designed to generate enough free cash to cover the dividend even at the low point of the oil price cycle. But it could be wrong.

    The stock’s valuation seems low enough to offset the risk. Over the past decade, Shell’s price/book value ratio has plunged to 1.2 from 2.5. On that basis, the stock’s discount to the Standard & Poor’s 500 index has widened to nearly 60% from less than 10%. Investors have been right to snub the stock based on rampant overinvestment at low returns. But that discount should narrow as the company reduces spending. A rise to $70 in a year would bring the stock to 1.4 times book. Exxon, which Evercore ISI’s Terreson estimates can earn an 11% return on its capital employed in a typical year, fetches 2.3 times book.

    Better fundamentals for oil from here could continue to lift share prices for other energy names, too. The sector’s weighting in the S&P 500 has fallen to 7% from 13% since 2008. But Shell has more room for self-help than its peers. Now it also has the tools and, apparently, the willingness to change. Investors should buy for the yield, hold for a higher price, and sell at the first sign of straying from its new spending plan.
  2. forum rang 8 Wilbar 29 juli 2016 11:03
    Crude oil enters bear market after losing $41 handle
    Published: July 29, 2016 4:58 a.m. ET

    Crude oil slid into a bear market Friday, as lingering concerns about oversupply and a deluge of refined products triggered a selloff.

    Crude for September delivery CLU6, -1.07% slumped 40 cents, or 1%, to $40.75 a barrel, setting it on track for its lowest settlement price since mid-April. The U.S. oil benchmark is now down 20.5% from its recent high in June. That reflects a bear market, which is defined as a downturn of 20% or more.
    Brent for the same month LCOU6, -1.73% gave up 55 cents, or 1.3%, to $42.15 a barrel.
    The losses came as fears of a persistent oversupply in the oil markets have been rekindled by a gasoline glut worldwide, as well as by early signs of increasing production in the U.S. and in members of the Organization of the Petroleum Exporting Countries.
    ..
    ..
    Elsewhere in the energy spectrum, gasoline for September RBU6, -1.59% dropped 1.5% to $1.28 a gallon, while natural gas for the same month NGU16, -0.17% fell 0.6% to $2.86 per million British thermal units.

    www.marketwatch.com/story/crude-oil-e...
  3. forum rang 8 Wilbar 29 juli 2016 14:34
    Winst ExxonMobil duikelt omlaag
    Gepubliceerd op 29 jul 2016 om 14:24

    RVING (AFN) - Het Amerikaanse olie- en gasconcern ExxonMobil heeft in het tweede kwartaal zijn nettowinst met 59 procent zien kelderen tot 1,7 miljard dollar. De lage olieprijs zorgde voor aanhoudend moeilijke markomstandigheden. Dat maakte het grootste onafhankelijke oliebedrijf ter wereld vrijdag bekend.
    Met name bij de divisie die olie oppompt (upstream) gingen de zaken lastig. Hier kelderde de winst naar 294 miljoen dollar, een daling met 1,7 miljard dollar ten opzichte van een jaar eerder. Ook bij de divisie die olie raffineert (downstream) was sprake van een sterke winstafname. De productie van olie en gas bleef nagenoeg onveranderd op het equivalent van 4 miljoen vaten per dag.
    De totale omzet ging naar 57,7 miljard dollar, van ruim 74 miljard dollar. De winst per aandeel bedroeg 41 cent, terwijl analisten in doorsnee rekenden op 64 cent per aandeel.
  4. forum rang 8 Wilbar 9 augustus 2016 08:41
    Amec Foster Wheeler books £440m in write-offs from oil slump

    Amec Foster Wheeler remained loss-making despite an increase in revenue in the first half of the year, as weakness in the oil and gas sector contributed to £440m of asset write-offs for the engineering group.

    Revenues increased 7 per cent compared to the same period last year, to £2.8bn, with strong growth in its clean energy and environment and infrastructure businesses. However, revenues in its US oil and gas business fell 55 per cent, with delays and cancellations of key contracts also leading to lower margins.

    The company reported a pre-tax loss of £446m for the half, compared to a profit of £73m in the first six months of 2015.

    It maintained guidance for the full year, but predicted like-for-like revenues will be down “double-digit” compared to last year.

    Amec recognised £440m of impairments during the period. The company aims to complete £500m of disposals by next June to help halve its net debt.

    However, it admitted that, excluding any benefit from disposals, net debt will be higher than previously forecast at the end of the year, at around £1.1bn.

    Amec Foster’s troubles reflect the toxic overspill of the oil sector’s pain. Companies that provide services and equipment for the offshore and shale industries, such as Wood Group or Weir, have been hammered as energy majors slash investment spending in response to the oil price slump.

    Amec Foster Wheeler designs, builds and maintains engineering equipment, and relies on the oil and gas industry for much of its business.

    www.ft.com/fastft/2016/08/09/amec-fos...
  5. [verwijderd] 12 september 2016 14:12
    Looming crisis for oil

    www.businessinsider.com/the-future-of...

    Excerpts:

    HSBC's note is more than 50 pages of detailed, thoughtful research on the state of the markets and how the dwindling availability of oil, along with jumping demand over the coming decades will change the world.

    But included within the report is a helpful, ten-point summary of the key arguments the bank makes, and what is going on right now. We have summarised the arguments below:

    Oil's oversupply problem, which has caused most of the trouble in the markets in recent years will end by 2017, and the market will return to balance.
    Spare capacity will have shrunk substantially by then "to just 1% of global supply/demand." This HSBC argues, will make the market more susceptible to disruptions like those seen in Nigeria and Canada in 2016.
    "Oil demand is still growing by ~1mbd every year, and no central scenarios that we recently assessed see oil demand peaking before 2040."
    81% of the production of liquid oil is already in decline.
    HSBC sees between 3 and 4.5 million barrels per day of supply disappearing once peak oil production is reached. "In our view a sensible range for average decline rate on post-peak production is 5-7%, equivalent to around 3-4.5mbd of lost production every year."
    Based on a simple calculation, HSBC estimates that by 2040, the world will need to find around 40 million barrels of oil per day to keep up with growing demand from emerging economies. That is equivalent to over 4 times the current crude oil output of Saudi Arabia.
    "Small oilfields typically decline twice as fast as large fields, and the global supply mix relies increasingly on small fields: the typical new oilfield size has fallen from 500-1,000mb 40 years ago to only 75mb this decade." — This will exacerbate the problem of declining oil fields, and the lack of supply.
    The amount of new oil discoveries being made is pretty small. HSBC notes that in 2015 the discovery rate for new wells was just 5%, a record low. The discoveries made are also fairly small in size.
    There is potential for growth in US shale oil, but it currently represents less than 5% of global supply, meaning that it will not be able, single-handedly at least, to address the tumbling global supply HSBC expects.
    "Step-change improvements in production and drilling efficiency in response to the downturn have masked underlying decline rates at many companies, but the degree to which they can continue to do so is becoming much more limited." Essentially HSBC argues that companies aren't improving their efficiency at a quick enough rate, meaning that supply declines will hit them even harder.
  6. forum rang 8 Wilbar 28 oktober 2016 14:49
    Chevron earnings beat big, trouncing estimates by 31 cents a share

    Chevron on Friday reported quarterly earnings of $1.3 billion, or 68 cents a share, on revenues of $30.14 billion.

    Chevron produced EPS of $1.09 on revenues of $34.3 billion in the third quarter of 2015. Analyst had forecast earnings of 37 cents on revenues of $30.3 billion.

    On Wednesday, Chevron raised its quarterly dividend by a penny to $1.08 a share.

    www.cnbc.com/2016/10/28/chevron-earni...
  7. forum rang 8 Wilbar 28 oktober 2016 14:50
    Winst ExxonMobil verder omlaag
    Gepubliceerd op 28 okt 2016 om 14:45

    IRVING (AFN) - Aan een lange reeks van winstdalingen bij ExxonMobil is ook in het derde kwartaal geen einde gekomen. De aanhoudende malaise op de oliemarkt vertaalde zich voor de Amerikaanse oliegigant in een daling van het resultaat onder de streep met een kleine 40 procent, tot 2,7 miljard dollar (2,4 miljard euro).
    Het was het achtste kwartaal op rij waarin ExxonMobil minder winst boekte dan een jaar eerder. Dat komt doordat de olieprijzen sinds de zomer van 2014 hard zijn gedaald, onder invloed van structurele overproductie en zorgen om de toekomstige vraag. Aan de sterke neergang lijkt voorlopig een einde te zijn gekomen, maar overtuigend prijsherstel laat nog altijd op zich wachten.
    ExxonMobil behaalde in de maanden juli tot en met september een omzet van in totaal 58,7 miljard dollar. Dat is bijna 13 procent minder dan in dezelfde periode vorig jaar.
  8. forum rang 8 Wilbar 28 oktober 2016 14:55
    Oliereus PetroChina ziet winst kelderen
    Gepubliceerd op 28 okt 2016 om 13:24

    PEKING (AFN/BLOOMBERG) - Het Chinese staatsoliebedrijf PetroChina heeft afgelopen kwartaal flink last gehad van de aanhoudend lage olieprijs. De winst kelderde daardoor met meer dan driekwart tot 1,2 miljard yuan (162 miljoen euro). De omzet daalde met een kleine 4 procent tot omgerekend 55,6 miljard euro, meldde het concern vrijdag.
    PetroChina is de grootste producent van ruwe olie en aardgas van China en 's lands op een na grootste producent van geraffineerde producten zoals auto-, vliegtuig- en scheepsbrandstoffen en smeermiddelen. Het bedrijf zucht al het hele jaar onder de malaise op de oliemarkt. Het slaagde er in de eerste jaarhelft maar net in uit de rode cijfers te blijven, nadat het in het eerste kwartaal wel een verlies in de boeken had gezet.
    De prijs van Brentolie, die wereldwijd als maatgevend wordt beschouwd, lag in het derde kwartaal gemiddeld op zo'n 47 dollar per vat, 8 procent lager dan een jaar eerder. Gezien de druk die het aanhoudend lage prijsniveau zet op de winstmarges, heeft PetroChina net als andere Chinese oliebedrijven de productie teruggeschroefd. China, na de Verenigde Staten 's werelds grootste energieconsument, is daardoor sterker afhankelijk geworden van de import.
  9. forum rang 7 ff_relativeren 5 juli 2017 21:27
    CNBC : de CEO's van ExxonMobil, RD Shell, en Total, hebben Qatar bezocht,
    voordat Qatar aankondigde dat het de LNG produktie met 30% wilde uitbreiden.

    Volgens bronnen in de industrie (aldus CNBC) hebben deze CEO's zich bereid getoond om Qatar te helpen om de produktie op te voeren naar 100 miljoen ton LNG op jaarbasis.

    bron : www.cnbc.com/2017/07/05/big-oil-is-ba... .
  10. [verwijderd] 10 juli 2017 14:13
    Oil Up? Oil Down? Blame the Algorithms

    As market moves confound analysts and longtime investors, many are pointing fingers at the rise of automated trading and algorithms

    Timothy Puko July 10, 2017 7:00 a.m. ET
    Oil investors say data like production and demand are no longer always driving crude prices. Here, an employee looks out on MOL Group’s Duna oil refinery in Százhalombatta, Hungary, in April 2017.
    Oil investors say data like production and demand are no longer always driving crude prices. Here, an employee looks out on MOL Group’s Duna oil refinery in Százhalombatta, Hungary, in April 2017. Photo: Oliver Bunic/Bloomberg News

    When energy analysts and investors couldn’t figure out oil markets this year, they blamed one group: algorithmic traders.

    On various days over the first six months of 2017, even amid signs of tightening supply, oil prices fell sharply, eventually sinking into bear market territory.

    Such moves confounded longtime watchers of oil, who said that based on the fundamental information, prices should have been rising.

    Oil investors, who make bets relying on data like production and demand, say that such forces are no longer always driving crude. They argue that program trading is distorting the market, often causing shallow price drops to snowball.

    Take May 25. Even after the Organization of the Petroleum Exporting Countries agreed to continue cutting back supply, oil fell almost 5%.

    While some observers attributed the move to investor expectations for deeper cuts from OPEC, others said the drop steepened as algorithms hopped on the trend. To fundamental oil investors, it was an example of how algorithmic trading and technical signs have been influencing commodities like never before.

    Saudi Arabia energy minister Khalid al-Falih was among those who pointed to technical trading for causing the May 25 selloff to intensify. “For many people, it was time to sell,” he said in an interview after the May 25 OPEC meeting. “Once you broke some of the technical barriers,” that also had an impact, he said.

    Although automated trading has swept stock and bond markets for years, it has only recently accounted for the majority of trades in energy.

    Automated trading in energy-related contracts accounted for 58% of volume in the period from 2014 to 2016, compared with 47% from 2012 to 2014, a March study by the Commodity Futures Trading Commission shows.

    Weekly data releases on U.S. crude storage are still a significant factor in market movement, but price swings have been magnified by programmed trading, analysts say.

    On March 8 and 9, analysts say algorithms kicked in after data showed record-high inventory levels. Oil slid that day below $50 a barrel for the first time this year.

    “An increasing number of market participants are being swayed more by the headlines than by counting physical barrels,” said Michael Tran, director of energy strategy at RBC Capital Markets. “A lot of this has been driven by algos and quants.”

    Strategies vary greatly among funds, making the impact of algorithms and automation difficult to quantify. The complexity of algorithms also make them an easy and misguided target for blame, said Michael Pomada, chief executive of Crabel Capital Management, a hedge fund with $2.2 billion in assets and $700 million in trend-following strategies.

    “It’s like the boogeyman,” said Mr. Pomada. “People tend to blame things that they don’t know much about.”

    Algorithms often have intricate and opaque methodology. They tend to follow set rules on when to buy and sell, using signals such as moving averages and volatility to identify trends. But traders may combine mathematical models and human discretion to place bets on price moves ranging from within one day to several months.

    Although both human traders and algorithms use automation to execute orders, the rising level of automated trades is one benchmark that reflects the growing influence and speed of computers in oil trading.

    Computerized trading is also taking over other commodities. According to the CFTC report, the share of automated trading in agriculture rose to 49% between 2014 and 2016 from 38% between 2012 and 2014, and to 54% from 47% in metals over the same periods.

    But crude has been particularly vulnerable to big swings this year as traders try to gauge the impact of OPEC cuts amid a global oil gut. Meanwhile, momentum traders who use algorithms have grasped for market trends, said Peter Hahn, of Bridgeton Research Group, a quantitative research firm.

    Oil is “in a transitioning period,” Mr. Hahn said. In that kind of market, “momentum-based algorithms are more likely to be whipped into and out of long and short positions.”

    Money is also pouring into some algorithmic strategies. In 2016, investors pumped $25.5 billion of new money into commodity trading advisors, or CTAs—many of which use algorithms to follow trends in the futures market—according to data provider Preqin. CTAs attracted another $7.2 billion of new investor cash in the first quarter of this year, bringing total assets to $256 billion.

    Funds that use trend-following strategies say it’s unlikely their models have been disrupting the market. Traditional funds that don’t specialize in systematic trading or commodities can also be trend followers.

    “There can be a lot of momentum players out there of all different types,“ said Christopher Reeve, director of product management at Aspect Capital, a CTA that uses trend-following strategies and manages more than $6 billion. “We would see very quickly if we were having too high of a market impact.”

    Goldman Sachs said CTAs can create trading opportunities. “Fundamental traders shouldn’t be afraid of the CTAs, but rather view them as creating opportunities when they push markets away from fundamentals,” the firm wrote in a commodities research report from June 29.

    Even traders that take positions based on fundamental signs are building models to predict how trend-followers can move oil, said Anthony Caruso, head of quantitative and macro strategies at Mesirow Advanced Strategies, a fund of hedge funds.

    “They know that trend-followers are kind of the elephant in the room,” he said.

    Write to Stephanie Yang at stephanie.yang@wsj.com and Timothy Puko at tim.puko@wsj.com
  11. forum rang 10 DeZwarteRidder 1 augustus 2017 11:34
    Schuld BP naar record door betalingen olieramp 2010

    Het Britse olie- en gasconcern BPBP_£p462,25+3,69% heeft zijn schuld het afgelopen kwartaal zien oplopen naar een recordhoogte van $39,8 mrd als gevolg van aanhoudende betalingen in verband met de olieramp in de Golf van Mexico in 2010. Dat blijkt uit de cijfers over het tweede kwartaal die BP dinsdag bekend heeft gemaakt.

    Het Britse bedrijf kon het afgelopen half jaar zijn dividendverplichtingen en investeringen dekken uit de kasstroom, maar om dat ook in de rest van het jaar te kunnen doen, mag de olieprijs niet verder omlaag gaan.

    Gebeurt dat wel, dan zal heet concern opnieuw geld moeten lenen. 'De groei van de schuld dit jaar loopt precies gelijk op met de betalingen die we doen voor Macondo (de olieramp in 2010, red.)', aldus financieel directeur Brian Gilvary tegenover persbureau Bloomberg. 'En de schuld zal weer omlaag gaan in de tweede helft van het jaar als de opbrengsten binnenkomen van de verkoop van bedrijfsonderdelen.
    Olie- en gasproductie omhoog

    Beleggers reageerden positief op het nieuws van BP. Het aandeel wint dinsdagochtend enkele procenten. Hoewel de aangepaste nettowinst van $ 684 mln in de afgelopen drie maanden lager was dan in dezelfde periode een jaar eerder ($ 720 mln), waren de cijfers beter dan door Bloomberg geraadpleegde analisten hadden ingeschat. Vooral de olie- en gasproductietak verbeterde het resultaat sterk vergeleken met dezelfde periode een jaar eerder.

    Bij 'downstream', het onderdeel dat ruwe olie en gas verwerkt tot brandstoffen en chemische producten, daalde de winst. De productie van olie- en gas steeg met 10%, deels door een nieuw verworven concessie in Abu Dhabi.
    Angola

    De tweedekwartaalcijfers bevatten ook een een eenmalige afboeking van $750 mln, vooral vanwege het afschrijven van een exploratie-belang in groot olieblok voor de kust van Angola. BP denkt niet langer dat het veld commercieel aantrekkelijk zal zijn.
  12. forum rang 7 ff_relativeren 7 juni 2018 22:52
    Wat heeft CO2 (Carbon Dioxide) met Shell te maken ?
    CO2 wordt een concurrent als brandstof ..

    Echt ? Euhh, ja dus. Een Wetenschappelijke organisatie, financieel ondersteund door Bill Gates, heeft een manier gevonden om van CO2 benzine, diesel of vliegtuigbrandstof te maken.

    Het staat uiteraard nog in de kinderschoenen ..

    bron : www.cnbc.com/2018/06/07/carbon-engine... .

  13. forum rang 7 ff_relativeren 1 juli 2018 20:48
    quote:

    ff_relativeren schreef op 21 juni 2018 01:01:

    Oliegigant TOTAL : Amerikaanse sancties maken het onmogelijk voor alle internationale oliebedrijven, om zaken te (blijven) doen met Iran ;

    www.cnbc.com/2018/06/20/no-big-oil-co... .

    En nog maar eens een waarschuwing op zondag, vanuit het Witte Huis, voor Europese bedrijven die zaken doen met Iran : www.reuters.com/article/us-usa-trump-... .
  14. forum rang 10 voda 1 augustus 2019 19:05
    BP Announces Major Expansion in Renewable Energy

    BP has agreed to form a 50:50 joint venture with Bunge a leader in agriculture, food and ingredients that will create a leading bioenergy company in one of the world’s largest fastgrowing markets for biofuels. BP will combine its Brazilian biofuels and biopower businesses with that of Bunge to create a world-scale, highly-efficient producer of sugarcane ethanol in Brazil, BP Bunge Bioenergia. BP’s interest in the new venture will grow its existing biofuels business by more than 50%.

    Ethanol produced from sugarcane is one of the most carbon-efficient biofuels available globally, with lifecycle greenhouse gas emissions around 70% lower than conventional hydrocarbon transport fuels. Brazil is the world’s second largest and most integrated market for ethanol as a transportation fuel with demand forecast to grow rapidly. The majority of vehicles in the country – around 70% – are already able to run on ethanol and the country’s demand for ethanol is estimated to increase by around 70% by 2030.

    Mr Bob Dudley, BP group chief executive, said that “This is another large-scale example of BP’s commitment to play a leading role in a rapid transition to a low carbon future. Biofuels will be an essential part of delivering the energy transition and Brazil is leading the way in showing how they can be used at scale, reducing emissions from transport. This combination will unlock new possibilities for improved efficiency and future growth in this key market."

    Mr Gregory A Heckman, Bunge’s Chief Executive Officer, said that “This joint venture with BP, one of the world’s leading energy companies, represents a major portfolio optimization milestone for Bunge. We are proud of what our team has done to evolve our sugar and bioenergy business as an industry leader. I am confident that this team, and the strong commitment from a global leader such as BP, will create even greater shareholder value.”

    Mr Dev Sanyal, chief executive of BP Alternative Energy, said that “In one step, this will allow BP to significantly grow the scale, efficiency and flexibility of our business in one of the world’s major growth biofuels markets. With a shared commitment to safety and sustainability, bringing together our assets and expertise will allow us to improve performance, develop options for growth and generate real value. BP Bunge Bioenergia will be well-placed to support Brazil’s increasing demand for both low carbon biofuels and biopower.”

    Source : Strategic Research Institute
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