BP Profit Triples to $2.6B in Q1 on Strong Oil, Gas Trading
BP's profit more than tripled to $2.6 billion in the first quarter thanks to stronger oil prices and bumper revenue from natural gas trading, paving the way for the energy company to start buying back its shares.The jump in profits from a year earlier comes as BP says it expects oil demand to recover in 2021 due to strong growth in the United States and China as COVID-19 vaccination programmes accelerate.In a sign of growing confidence in the economic recovery and its operations following a year of cutting costs, headcount and its dividend, BP said it will buy back $500 million of shares in the second quarter to offset dilution from an employee share distribution programm
Oil Companies Swap Stakes in Mexico
With Mexico's government insisting that energy companies increase oil and gas output before it auctions off more of the country's vast reserves or offers more partnerships with state-run Pemex, firms ranging from foreign majors to local players are scrambling to buy and sell blocks they already own.The negotiations are creating a dynamic secondary market for oil acreage, which could be the only investment opportunity left for firms until leftist President Andres Manuel Lopez Obrador unblocks his predecessor's flagship energy reform that has…
ExxonMobil Misses Q1 Profit Estimates
Exxon Mobil Corp on Friday reported a 49 percent fall in first-quarter profit that missed forecasts due to weakness across its major businesses that showed the turnaround at the company remains a work in progress.The largest U.S. oil producer posted its first loss in its refining business since 2009 on higher maintenance costs and reported lower profits in chemicals and oil and gas."It was a tough market environment for us this quarter," Exxon Senior Vice President Jack Williams said on a call with analysts.First-quarter profit fell to $2.35 billion…
Orsted Lifts 2018 Outlook
Danish energy group Orsted posted third-quarter profit well above analyst expectations on Thursday and lifted its outlook for the year, in part thanks to the contribution from new offshore wind projects.Orsted now expects EBITDA for the year excluding new partnership deals at 13 billion to 14 billion Danish crowns, up from 12.5 billion to 13.5 billion previously guided."The increase is primarily due to good progress on our offshore construction projects," Chief Executive Henrik Poulsen said in a statement, noting a faster ramp-up of power…
Neptune Energy Reports $70 mln H1 Profit
Private equity-backed oil and gas producer Neptune Energy on Thursday reported a profit of $70 million and a cash pile of over $500 million in the first quarterly results it has published, adding that it was on the lookout for more assets.Several private equity-backed players have entered the British oil and gas sector since the downturn of 2014 and investors are expecting some will eventually move towards an initial public offering (IPO) on the stock exchange.Neptune, which is backed by the Carlyle Group and CVC Capital partners and headed by former Centrica boss Sam Laidlaw…
Neptune Energy Buys VNG's O&G Assets off Norway, Denmark
Private equity-backed Neptune Energy has agreed to buy the Norwegian and Danish offshore oil and gas assets of German gas utility VNG, the companies said on Thursday.Headed by former Centrica boss Sam Laidlaw and backed by the Carlyle Group and CVC Capital partners, Neptune seeks to become a leading independent exploration and production (E&P) firm, it added.The transaction follows a deal by Neptune last year to buy the oil and gas unit of France's Engie for $3.9 billion.The deal is also a continuation of a trend among European utilities selling out of upstream oil and gas business as their core onshore activity is being challenged by renewable energy.The size of the VNG
GE Profit Tops Estimates
General Electric Co posted quarterly results that topped expectations on Friday, as earnings from aviation, healthcare and transportation offset weak power and oil-and-gas profits, sending shares sharply higher. GE affirmed its forecast for 2018 earnings and cash flow, and said it expects to book as much as $10 billion in proceeds from divesting industrial assets this year. Those comments eased concern that GE would post poor results. GE's profit reflected 7-percent revenue growth and vigorous cost cutting. Revenue rose in aviation, oil-and-gas and healthcare, offsetting declines in power, transportation, lighting and renewable energy.
BHP Hires Four Banks for U.S. Shale Exit
BHP hires Barclays, Citi, BAML and GS. BHP , the world's largest miner, has asked four investment banks to help it prepare for either a sale or spin-off of its underperforming U.S. shale oil and gas unit, with a view to taking a decision in early 2018, sources said. BHP said in August it aimed to sell its unconventional onshore shale assets in the Eagle Ford, Permian, Haynesville and Fayetteville basins, which it acquired at the height of the oil boom and could be valued at more than $10 billion. It has hired Barclays and Bank of America-Merrill Lynch to assess options for the sale of assets…
Big Oil turns to Big Data for Drilling Economies
In today's U.S. shale fields, tiny sensors attached to production gear harvest data on everything from pumping pressure to the heat and rotational speed of drill bits boring into the rocky earth. The sensors are leading Big Oil's mining of so-called big data, with some firms envisioning billions of dollars in savings over time by avoiding outages, managing supplies and identifying safety hazards. The industry has long used sophisticated technologies to find oil and gas. But only recently have oil firms pooled data from across the company for wider operating efficiencies - one of many cost-cutting efforts spurred by the two-year downturn in crude oil prices.
BASF: Role of Oil & Gas Unit to Decline
CEO says focus of profitability drive to be on chems, agchems, but sees no reason to exit oil and gas activities. BASF, the world's largest chemicals maker, said its focus would be on boosting profitability at its chemicals and crop protection businesses as the contribution to earnings from oil and gas, hurt by low crude oil prices, diminishes further. The company, whose products include catalytic converters, vitamins, foam chemicals and engineering plastics, would continue to buy businesses and sell non-core activities to boost growth and earnings stability, Chief Executive Kurt Bock told shareholders at the group's annual general meeting on Friday.
DONG Energy Settles Platform Dispute
DONG Energy said it has reached a settlement with Daewoo Shipbuilding & Marine Engineering and Technip over who bears responsibility for construction errors concerning an offshore platform for the idled Hejre field. The settlement clears a major hurdle for the Danish company's plans to divest its oil and gas unit to focus on its growing business of developing offshore wind farms. DONG said in a statement that the agreement will reduce the 2.5 billion Danish crowns ($367 million) of provisions it made in relation to the Hejre field ahead of its listing, which was one of the largest in the world last year.
Petrobras Says Injunction Blocking Sale of Gas Unit NTS Overturned
Brazil's state-controlled oil company Petroleo Brasileiro SA said on Thursday that an injunction blocking the sale of its gas pipeline unit Nova Transportadora do Sudeste SA (NTS) to a group led by Canada's Brookfield Asset Management Inc has been overturned. Petrobras, as the company is known, said in a securities filing that it plans to continue with NTS divestiture. The group led by Brookfield agreed to pay $5.2 billion for the unit in September. (Reporting by Tatiana Bautzer; Editing by Daniel Flynn)
Rotterdam port mull power-to-gas-plant development
Six Rotterdam-based parties will investigate how sustainably generated electricity, converted into hydrogen, can be used in the production of fuels. TNO, Stedin, Smartport, Uniper, BP Refinery Rotterdam and Port of Rotterdam Authority will investigate the technical and economic feasibility of a power-to-gas plant in the Rotterdam port area, as well as the necessary amendments to regulations. The parties above signed a cooperation agreement to this end on 18 January 2017. The construction of wind farms in the North Sea means that a large amount…
Brazil's Ultrapar to invest $659 mln
Ultrapar Participações SA , a large player in energy and infrastructure in Brazil, plans to invest 2.17 billion reais ($659 million) in 2017 to increase output and modernize its operations, the company said in a filing on Friday. More than half of that investment, or 1.1 billion reais, will go to its fuel distribution unit Ipiranga, the country's second largest. In November, Ultrapar bought Petrobras' liquefied petroleum gas unit, Liquigás Distribuidora SA, for 2.8 billion reais in an effort expand its margin. (Reporting by Alonso Soto; Editing by Sandra Maler)
Petrobras May Shed Gas Unit to Ultrapar
Brazil's state-run oil company Petroleo Brasileiro SA is close to announcing the sale of its liquified petroleum gas distribution unit Liquigás Distribuidora SA to industrial group Ultrapar Participações SA , a source close to the matter told Reuters. Petrobras, as the company is known, will receive around 2.8 billion reais ($822 million), the source said. The deal may be announced as soon as this week. Brazilian newspapers O Estado de S. Paulo and Valor Econômico reported the deal closing earlier on Thursday. Reporting by Tatiana Bautzer
Subsidy-Reliant Offshore Wind Takes Cue from Big Oil
From a helicopter, it looks like just another North Sea oil rig, a grey cube supported by massive yellow pillars, 90 kilometres (56 miles) off western Denmark. But the DanTysk facility is the world's first accommodation platform for offshore wind, which is borrowing techniques and labour from the crisis-hit oil sector as it tries to cut costs and end an addiction to state subsidies. The wind industry is moving further offshore and into the deeper waters tamed long ago by oil companies to increase scale and capture stronger and more constant winds.
Freeport-McMoRan: Oil & Gas CEO Stepping Down
Energy and mining company Freeport-McMoRan Inc said the chief executive of its oil and gas unit, Jim Flores, is stepping down as the company restructures the business. Freeport-McMoRan said it would eliminate all executive management roles at the unit and integrate the financial and administrative roles with the company's corporate functions as it attempts to cut costs. Reporting by Arathy S Nair
Siemens Names Holt CEO of Power Generation Services
Siemens appointed Tim Holt as the new chief executive of its Power Generation Services division, succeeding Randy Zwirn, 62, who will retire on Oct. 1. Holt, 46, is currently CEO of the Power and Gas unit within Power Generation Services. His successor will be announced at a later date, Siemens said on Wednesday. (Reporting by Georgina Prodhan; Editing by Alexander Smith)
Anadarko to Buy Freeport's U.S. Gulf Assets
Anadarko Petroleum Corp said it agreed to buy deepwater Gulf of Mexico assets of Freeport McMoRan Inc's oil and gas unit for $2 billion. The deal, effective Aug. 1, adds about 80,000 net barrels of oil equivalent per day to Anadarko's sales-volume outlook. (Reporting by Rachit Vats in Bengaluru; Editing by Anil D'Silva)
GE to Merge Oil & Gas Unit with Baker Hughes
General Electric Co said on Monday it would merge its oil and gas business with Baker Hughes Inc, creating the world's second-largest oilfield services provider as competition heats up to supply more-efficient products and services to the energy industry after several years of low crude prices. The deal to create a company with $32 billion in annual revenue will combine GE's strengths in making equipment long-prized by oil producers with Baker Hughes's expertise in drilling and fracking new wells. Shares of Baker Hughes were down nearly 7 percent, a drop that executives said likely was due to the deal's complicated structure.
