BP cut its dividend for the first time in a decade, removing a cornerstone of its investment case after the coronavirus pandemic upended almost every aspect of its business. Reuters
BP cut its dividend for the first time in a decade, removing a cornerstone of its investment case after the coronavirus pandemic upended almost every aspect of its business. Reuters
BP cut its dividend for the first time in a decade, removing a cornerstone of its investment case after the coronavirus pandemic upended almost every aspect of its business. Reuters
BP cut its dividend for the first time in a decade, removing a cornerstone of its investment case after the coronavirus pandemic upended almost every aspect of its business. Reuters

Why BP needs to deliver on its latest reinvention


Robin Mills
  • English
  • Arabic

All oil companies reinvent themselves but BP makes more noise about it. The company that gave us the modern big oil company model, then “Beyond Petroleum”, now plans to become an “integrated energy company focused on delivering solutions for customers”. Cynics might see this as a distraction from its poor quarterly results but environmentalists and, increasingly, investors see it as the path all petroleum companies must tread.

BP does have a history of transforming itself through crises. Anglo-Persian, a pioneer on the Middle East oil scene, became Anglo-Iranian in 1935, then BP in 1954 after its nationalisation and post-coup return to Iran.

In the late 1970s and early 1980s, a wave of nationalisations reduced the share of Middle Eastern oil in BP’s output from 80 per cent to 10 per cent, as it remained only in Abu Dhabi. This acted as a catalyst for the rise of spot crude trading and the end of the dominant model of vertical integration that John D Rockefeller had invented in the US in the late 1800s.

Along with Shell, BP championed non-Opec oil output in new pastures, but became a “two-pipeline company” that was overly reliant on Alaska and the North Sea.

Chief executive John Browne, appointed in 1995, transformed the company. In August 1998, at a time of record low oil prices, his deal to buy smaller American rival Amoco and create the first “super-major” was a bet on scale and cost-cutting. In April 1999, he also swooped on Arco.

The collapse of the Soviet Union allowed BP to strike the "contract of the century" in Azerbaijan in 1994 and to buy half of Russia's TNK from oligarch owners in 2003, the most successful foray by a western company into the "Wild East".

Lord Browne, as he became in 2001, announced that the company’s iconic initials now stood for “Beyond Petroleum”. BP established an initially successful, if small, solar business but its ventures into the non-oil business were not more significant than those of its peers and its gas position lagged Shell’s.

Still, BP’s rebranding was ahead of its time – too far ahead for its shareholders. The renewable industry in those years was too small and dependent on subsidies. When it did grow, BP Solar lost out to competition from China.

BP has not been Big Oil's green leader recently. From 2010 to 2018, it spent about 2.3 per cent of its capital expenditure on low-carbon energy, mostly biofuels and wind. This was some way ahead of Shell and Equinor, and far surpassed American companies, but was well behind Total’s 4.3 per cent. Additionally, Shell, Total and Saudi Aramco have led recent clean-energy deal-making.

However, new chief executive Bernard Looney has been one of the most outspoken oil leaders on the need to transition to net-zero carbon emissions. Appointed in February, he immediately aimed for BP’s production to be net-zero carbon and to halve the carbon intensity of products it sells by 2050.

In June, the company divested from its petrochemical unit, the precise opposite of what national oil companies in the Middle East have been doing.

BP announced a loss last Tuesday and halved its dividend, while other European peers had small profits and good trading results. But Mr Looney overshadowed the quarterly figures with a decadal goal – to cut oil and gas output by 40 per cent by 2030 and spend $5 billion (Dh18.35bn) annually on low-carbon energy, building 50 gigawatts of renewable energy capacity, almost enough to meet the entire UK’s peak demand.

The business will be reshaped around low-carbon energy (biofuels, renewables, carbon capture and storage and the emerging fuel of hydrogen), as well as mobility (fuel retail, electric vehicles, charging and batteries) and a smaller helping of hydrocarbons.

The shift is unavoidable, given shareholder and government pressure in Europe. But it is also very risky. In the wake of the coronavirus crisis, much lower legacy oil and gas profits will have to fund projects where BP does not have a clear competitive advantage. It will have to invent a business model that is superior not just to other oil companies but also to electricity utilities and others in the new energy space.

Its mobility business is competing in growth markets – China and India - with strong and nationally favoured incumbents. The company must transform profitably in a very fluid and fast-evolving world of new energy technology, falling costs and disruptive shifts in government policy.

Smaller Spanish company Repsol already announced in 2018 that it would not seek to grow its oil and gas output anymore. If other European oil companies follow it and BP, that would mean a hole in new supplies. Even a substantial drop in world oil demand because of climate policies does not remove the need to replace the natural decline of ageing fields.

Without new investment, last year’s 100 million barrels per day of production will fall to about 20 million bpd by 2040, while even in a climate-constrained world, demand will be at least 60 million bpd.

If the gap is not filled, oil prices will rise sharply, probably precipitating an economic slowdown and even more investment in non-oil technology.

More likely, the oil battleground will be contested by American companies ExxonMobil and Chevron, leading national oil companies such as Aramco and Petronas, Chinese and Russian state-owned oil operators and new private-equity backed entities.

Those corporations cannot ignore climate change either, but for now they face less investor and public pressure.

Other European oil companies are envisaging similar transformations and may even be further along in practical terms. But, as often before, BP has been first out of the blocks in articulating its vision. For a company where spin and substance have sometimes been at odds, the most radical shift of its history demands delivery.

Robin Mills is chief executive of Qamar Energy and author of The Myth of the Oil Crisis.

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Your Guide to the Home
  • Level 1 has a valet service if you choose not to park in the basement level. This level houses all the kitchenware, including covetable brand French Bull, along with a wide array of outdoor furnishings, lamps and lighting solutions, textiles like curtains, towels, cushions and bedding, and plenty of other home accessories.
  • Level 2 features curated inspiration zones and solutions for bedrooms, living rooms and dining spaces. This is also where you’d go to customise your sofas and beds, and pick and choose from more than a dozen mattress options.
  • Level 3 features The Home’s “man cave” set-up and a display of industrial and rustic furnishings. This level also has a mother’s room, a play area for children with staff to watch over the kids, furniture for nurseries and children’s rooms, and the store’s design studio.
     

8 traditional Jamaican dishes to try at Kingston 21

  1. Trench Town Rock: Jamaican-style curry goat served in a pastry basket with a carrot and potato garnish
  2. Rock Steady Jerk Chicken: chicken marinated for 24 hours and slow-cooked on the grill
  3. Mento Oxtail: flavoured oxtail stewed for five hours with herbs
  4. Ackee and salt fish: the national dish of Jamaica makes for a hearty breakfast
  5. Jamaican porridge: another breakfast favourite, can be made with peanut, cornmeal, banana and plantain
  6. Jamaican beef patty: a pastry with ground beef filling
  7. Hellshire Pon di Beach: Fresh fish with pickles
  8. Out of Many: traditional sweet potato pudding
UK-EU trade at a glance

EU fishing vessels guaranteed access to UK waters for 12 years

Co-operation on security initiatives and procurement of defence products

Youth experience scheme to work, study or volunteer in UK and EU countries

Smoother border management with use of e-gates

Cutting red tape on import and export of food

BUNDESLIGA FIXTURES

Friday (UAE kick-off times)

Borussia Dortmund v Paderborn (11.30pm)

Saturday 

Bayer Leverkusen v SC Freiburg (6.30pm)

Werder Bremen v Schalke (6.30pm)

Union Berlin v Borussia Monchengladbach (6.30pm)

Eintracht Frankfurt v Wolfsburg (6.30pm)

Fortuna Dusseldof v  Bayern Munich (6.30pm)

RB Leipzig v Cologne (9.30pm)

Sunday

Augsburg v Hertha Berlin (6.30pm)

Hoffenheim v Mainz (9pm)

 

 

 

 

 

Neil Thomson – THE BIO

Family: I am happily married to my wife Liz and we have two children together.

Favourite music: Rock music. I started at a young age due to my father’s influence. He played in an Indian rock band The Flintstones who were once asked by Apple Records to fly over to England to perform there.

Favourite book: I constantly find myself reading The Bible.

Favourite film: The Greatest Showman.

Favourite holiday destination: I love visiting Melbourne as I have family there and it’s a wonderful place. New York at Christmas is also magical.

Favourite food: I went to boarding school so I like any cuisine really.

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Under 19 Cricket World Cup, Asia Qualifier

Fixtures
Friday, April 12, Malaysia v UAE
Saturday, April 13, UAE v Nepal
Monday, April 15, UAE v Kuwait
Tuesday, April 16, UAE v Singapore
Thursday, April 18, UAE v Oman

UAE squad
Aryan Lakra (captain), Aaron Benjamin, Akasha Mohammed, Alishan Sharafu, Anand Kumar, Ansh Tandon, Ashwanth Valthapa, Karthik Meiyappan, Mohammed Faraazuddin, Rishab Mukherjee, Niel Lobo, Osama Hassan, Vritya Aravind, Wasi Shah

Bib%20Gourmand%20restaurants
%3Cp%3EAl%20Khayma%0D%3Cbr%3EBait%20Maryam%0D%3Cbr%3EBrasserie%20Boulud%0D%3Cbr%3EFi'lia%0D%3Cbr%3Efolly%0D%3Cbr%3EGoldfish%0D%3Cbr%3EIbn%20AlBahr%0D%3Cbr%3EIndya%20by%20Vineet%0D%3Cbr%3EKinoya%0D%3Cbr%3ENinive%0D%3Cbr%3EOrfali%20Bros%0D%3Cbr%3EReif%20Japanese%20Kushiyaki%0D%3Cbr%3EShabestan%0D%3Cbr%3ETeible%3C%2Fp%3E%0A
Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Results

Male 51kg Round 1

Dias Karmanov (KAZ) beat Mabrook Rasea (YEM) by points 2-1.

Male 54kg Round 1

Yelaman Sayassatov (KAZ) beat Chen Huang (TPE) TKO Round 1; Huynh Hoang Phi (VIE) beat Fahad Anakkayi (IND) RSC Round 2; ​​​​​​​Qais Al Jamal (JOR) beat Man Long Ng (MAC) by points 3-0; ​​​​​​​Ayad Albadr (IRQ) beat Yashar Yazdani (IRI) by points 2-1.

Male 57kg Round 1

Natthawat Suzikong (THA) beat Abdallah Ondash (LBN) by points 3-0; Almaz Sarsembekov (KAZ) beat Ahmed Al Jubainawi (IRQ) by points 2-1; Hamed Almatari (YEM) beat Nasser Al Rugheeb (KUW) by points 3-0; Zakaria El Jamari (UAE) beat Yu Xi Chen (TPE) by points 3-0.

Men 86kg Round 1

Ahmad Bahman (UAE) beat Mohammad Al Khatib (PAL) by points 2-1

​​​​​​​Men 63.5kg Round 1

Noureddin Samir (UAE) beat Polash Chakma (BAN) RSC Round 1.

Female 45kg quarter finals

Narges Mohammadpour (IRI) beat Yuen Wai Chan (HKG) by points.

Female 48kg quarter finals

Szi Ki Wong (HKG) beat Dimple Vaishnav (IND) RSC round 2; Thanawan Thongduang (THA) beat Nastaran Soori (IRI) by points; Shabnam Hussain Zada (AFG) beat Tzu Ching Lin (TPE) by points.

Female 57kg quarter finals

Nguyen Thi Nguyet (VIE) beat Anisha Shetty (IND) by points 2-1; Areeya Sahot (THA) beat Dana Al Mayyal (KUW) RSC Round 1; Sara Idriss (LBN) beat Ching Yee Tsang (HKG) by points 3-0.

RESULT

Norway 1 Spain 1
Norway: King (90 4')
Spain: Niguez (47')

The%20specs
%3Cp%3E%3Cstrong%3EPowertrain%3A%20%3C%2Fstrong%3ESingle%20electric%20motor%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E201hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E310Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20auto%0D%3Cbr%3E%3Cstrong%3EBattery%3A%20%3C%2Fstrong%3E53kWh%20lithium-ion%20battery%20pack%20(GS%20base%20model)%3B%2070kWh%20battery%20pack%20(GF)%0D%3Cbr%3E%3Cstrong%3ETouring%20range%3A%20%3C%2Fstrong%3E350km%20(GS)%3B%20480km%20(GF)%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C900%20(GS)%3B%20Dh149%2C000%20(GF)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
THE BIO

Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.

Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.

Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.

Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.

 

 

Conflict, drought, famine

Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.

Band Aid

Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.

Abu Dhabi Card

5pm: Maiden (PA) Dh 80,000 1,400m

National selection: AF Mohanak

5.30pm: Handicap (PA) Dh 90,000 1,400m

National selection: Jayide Al Boraq

6pm: Handicap (TB) Dh 100,000 1,400m

National selection: Rocket Power

6.30pm: Abu Dhabi Championship Listed (PA) Dh 180,000 1,600m

National selection: Ihtesham

7pm: Wathba Stallions Cup Handicap (PA) Dh 70,000 1,600m

National selection: Noof KB

7.30pm: Maiden (PA) Dh 80,000 2.200m

National selection: EL Faust

Company profile

Name: Steppi

Founders: Joe Franklin and Milos Savic

Launched: February 2020

Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year

Employees: Five

Based: Jumeirah Lakes Towers, Dubai

Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings

Second round raised Dh720,000 from silent investors in June this year