Elliott Presses BHP to Shed Petroleum
BHP petroleum business has value of more than $20 billion. Activist investor Elliott Management raised the pressure for strategic changes at BHP on Tuesday, calling for an independent review of the mining giant's petroleum business. Elliott, which has built up a 4.1 percent stake in BHP's London-listed arm and is urging changes to boost shareholder value, said there were clear signs the market was receptive to a new strategy for BHP. "There is extremely broad and deep-rooted support for pro-active steps to be taken by management to achieve an optimal value outcome for BHP's petroleum business following a formal open review…
Europe's Airlines Up Their Jet Fuel Hedge Bets
European airlines are exploiting a collapse in oil prices by hedging more of their fuel needs further into the future, but those that kept their powder dry before the rout are emerging as clear winners, industry sources say. At a time of heightened price volatility, carriers are also considering using more options contracts to access lower prices should they fall further. Many airlines, however, lack the manoeuvrability to benefit; before oil slumped they locked themselves into much higher costs, with some approaching $1,000 per tonne of jet fuel, roughly double current rates on the spot market.
Oil Firms Opt for Stability, Urge Scotland to Stay in UK
Reuters - Royal Dutch Shell has become the second energy heavyweight to urge Scotland to stay in the United Kingdom as the campaign for Scottish independence battles mounting opposition from businesses. Shell is a key player in the North Sea oil and gas fields off Scotland and its Chief Executive Ben van Beurden said a vote for independence on Sept. 18 would mean greater uncertainty for the energy industry. Last month, the boss of BP warned Scottish independence could cause "uncertainties" for his company. Other oil companies in the North Sea on Thursday stressed the importance of predictability for their operations…
