Bp Share Discussion Threads

[crazi] 20/1/2021 07:32

I did - agree about the DOW...ready for a fall

The FTSE like he says needs an Intervention and that is currently happening with the Vaccine rollout. BP still has a long way to climb this year but never in a straight line. The FTSE is also 25% undervalued so will slowly catch up this year.

As the DOW falls you will also see an influx of funds to the FTSE.

Irish - you can try scaremonger all you want but last year was the year to go Short - this year is the year to go Long...

[irish luck] 19/1/2021 15:05

Invisage

That was a top post, cheers
Maybe crazi should take a look at it , lol

[invisage] 19/1/2021 14:24

John Burford latest analysis on BP ...

[crazi] 19/1/2021 14:06

Or I could just post the article for a good read ;-) BP 20% profits...

[irish luck] 19/1/2021 11:57

You bulls have gone a bit quiet today

crazi
You could post a link for you post instead of filling the board, then if anyone was interested they could open it.

[jobs2view] 19/1/2021 11:22

StoreDot in the press today.

Here's an old article but relevant...

Tel Aviv, Israel, 12th June 2019 – Yesterday for the first time, StoreDot and its strategic partner BP demonstrated a live, full-charge of a two-wheel electric vehicle (EV) in just five minutes. An electric scooter equipped with StoreDot’s ultra-fast charging battery demonstrated that this technology can charge an electric vehicle in only five minutes. This proof-of-concept represents a major milestone for ultra-fast charging battery technology and its game-changing potential to accelerate the adoption of EVs.

 

StoreDot’s ultra-fast charging battery technology offers the potential to bring electric vehicle charging times down to current refueling times. When coupled with the required ultra-fast charging infrastructure, it is expected to dramatically improve the EV ownership experience and play a key role in the earlier adoption of EVs – reducing the environmental impact of transportation as a result.

[burtond1] 18/1/2021 09:55

With much of the Western world still in various states of lockdown, how strong will the recovery in #Oil be, and what companies are best placed to benefit?We consider the sector's prospects for 2021#RDSB #BP #DGOC #TXP #DELT #RBD #IOG #WTE #ADME #ENQhttps://total-market-solutions.com/2021/01/green-shoots-for-oil-and-the-energy-sector/

[crazi] 17/1/2021 21:14

Groceries Prove a Pandemic Bright Spot for BP and Shell
16/01/2021 10:59am
Dow Jones News

Bp (LSE:BP.)
Intraday Stock Chart

Sunday 17 January 2021

Click Here for more Bp Charts.By Sarah McFarlane
LONDON -- Coffee and groceries are becoming a bigger part of BP PLC and Royal Dutch Shell PLC's bottom line.

Gas stations have emerged as one of the most profitable parts of the major oil companies' sprawling operations during the pandemic, with higher spending on food and drink offsetting weaker demand for fuel. That is encouraging both companies to push ahead with plans to expand their retail businesses, which they are betting can help offset declining oil income longer term.

Shell plans to add 10,000 branded retail sites to its 45,000-strong network world-wide -- larger than Starbucks Corp. or McDonald's Corp -- in the next five years. BP, which currently has 19,000 locations, wants to add 6,700 sites in growth markets by 2030.

"We believe we can more than offset the impact of fuel volume declines in established markets to 2030 through growth in convenience," Emma Delaney, BP's head of customers and products, told investors at its strategy event last year.

Selling coffee, food and other household items at gas stations is an attractive business, executives and consultants say, because profit margins are typically higher than the oil business and returns are more stable because they aren't linked to volatile energy prices.

Exxon Mobil Corp. and Chevron Corp haven't benefited to the same extent as their European counterparts as they have fewer sites after selling them off in the past.

Both Shell and BP say they make a return on investment of more than 20% in their marketing divisions, which includes gas stations, as well as lubricants and premium fuels, compared with a typical 15% return on oil projects and 10% return on renewable-energy projects.

Shell's marketing business reported record adjusted earnings of $1.6 billion in the third quarter, up from $1.5 billion in the previous year's period. The division generated more than half the company's overall earnings in the quarter, compared with around 20%-30% in recent years, although the proportion could fall as oil prices recover.

Huibert Vigeveno, downstream director at Shell, said the company's gas stations were able to adjust to weaker demand for fuel and capitalize on changing shopping habits by offering more groceries and bakery goods.

"Even with less customers, you're selling a higher basket size," Mr. Vigeveno said in an interview. Customers purchased 15% more when visiting Shell stores in the first nine months of 2020, compared with the same prior-year period.

Mr. Vigeveno said Shell sells 450 million snacks, 350 million cold beverages and 250 million cups of coffee each year, and had accelerated the rollout of new services at gas stations like parcel collection and home delivery. In the U.K., for instance, drinks and snacks can be ordered from Shell sites via Uber Eats and Deliveroo.

"Before Covid, we were doing home delivery from our retail sites, maybe a couple of hundred world-wide, now we're actually in the thousands and growing," Mr. Vigeveno said.

BP's marketing business has also seen opportunities in the pandemic, with the third quarter its best for nearly two years, as strong retail sales offset a 15% fall in fuel volumes.

It also turned to home delivery to boost sales, signing partnerships with delivery app Glovo in Spain and Deliveroo in the U.K. to dispatch items from gas stations.

BP, which also owns Amoco and ampm stores in the U.S., says it plans to invest in proprietary food brands and seek further retail partnerships to boost the profitability of its gas stations and offset a forecast fall in earnings related to fossil fuels.

Overall, both companies say they plan to offer more services at existing sites in established markets like the U.S. and Germany, while adding new locations in developing markets like China, India and Indonesia.

The profit is in the stores rather than fuel sales, and additional services don't need to be profitable if they make customers visit more frequently, said Sabine Benoit, a professor of marketing at the U.K.'s University of Surrey.

"They're moving away from Cokes and smokes, and it's about the on-the-go consumption and fresh food," she said. "A lot of the sales volume comes from fuel, but the profit is in the shop."

Hot food sold at U.S. gas stations has a gross profit margin of around 54%, while candy is 50% and groceries are over 40%, according to 2019 data from the U.S. National Association of Convenience Stores. In comparison, the gross margin on a gallon of gasoline was 9% based on the average 2019 price, according to data provider IHS Markit Ltd.

Still, some analysts are skeptical about how long oil companies' spotlight on retail will last. Retail is only in focus because it is one of the few parts of the business that is making money, said Scott Annan, an independent retail consultant.

During the late 2000s, when oil prices traded over $100 a barrel, major oil companies sold gas stations because they weren't viewed as strategic, he noted. "The money they were making was much less than the money they could make prospecting for oil," Mr. Annan said.

Electric vehicles also present a new conundrum for gas stations, because charging isn't as lucrative as liquid fuel and it can be done at home or work. France's Total SE estimates that in Europe only 5% of electric vehicles will charge at gas stations. Still, both Shell and BP plan to add thousands of charging points at existing gas stations and other sites.

BP is also trialing gas stations with no gas. The company has opened several of what it is calling mobility hubs, including in London and Berlin, which feature services found at filling stations as well as electric vehicles and bikes for hire, charging points and a cafe. The London site doesn't sell liquid fuel.

Some think the pandemic has helped the oil companies prepare for the future.

"Covid-19 was effectively a dress rehearsal," said Frank Beard, a retail consultant. "We already knew there were likely some headwinds coming at fuel demand in future, combustion engines are becoming more efficient and electric vehicles are coming."

Write to Sarah McFarlane at [e-mail]

[steviec1] 15/1/2021 21:23

'Stepping up the green drive' - this is more than just oil - definite BUY

[eurofox] 15/1/2021 15:39

added 298.5

[irish luck] 15/1/2021 15:35

In my experience most gaps fill, there are instances were it will take months/ years
but this BP gap is too near not to fill imho

The world is wallowing in debt and fear, this virus is vicious and needs to be beaten, but that's not done yet

288 is the first leg down

[maxplus2] 15/1/2021 15:22

What's your prediction? Do you think the gap would be filled?

[irish luck] 15/1/2021 15:17

Its not all about oil

[crazi] 15/1/2021 15:11

LiveSquawk
@LiveSquawk
·
1m
J.P. Morgan Remains Bullish On Oil, Expect Prices To Overshoot $60/Bbl Near-Term, As Market Moves To Deficit This Year On An Annualized Basis For First Time Since 2017

Bogman - at least 60. With cost reductions the share price could easily hit 75 on current figures alone...

[crazi] 15/1/2021 09:43

MM's having fun today...

[boozey] 15/1/2021 00:43

NP having a stormer in US tonight - up 3.6% including after hours trading

[geckotheglorious] 14/1/2021 20:43

Indeed, couple of great posts PJ,
I up recced em both.

[smurfy2001] 14/1/2021 16:52

The big boys always get in ahead of the pack.

Mr Red tick knows this.

[irish luck] 14/1/2021 16:46

Hello PJ lol

Nice couple of posts.

Skinny,
cheers, I`m in an area that is well ahead of the game, vaccinating low 70s lol.

PS.....I`m still short

[pj84] 14/1/2021 16:15

PS I should have sent that in morse code but would have taken too long to remember/translate and maybe semaphor may have been quicker but like you I am too old to work out to send a video message in ADVFN :)

[skinny] 14/1/2021 16:10

Irish Luck - must be a relief - good luck!

[pj84] 14/1/2021 16:08

My thoughts are that when the scale of the global pandemic was becoming apparent in March, the markets did what you expected and fell sharply across all sectors.
Then governments started borrowing and like the Bank of England started creating money on a scale we never expected in peacetime.

The effect for individual stocks was sector specific and there are some sectors that have suffered the worst despite the epic government support and in those sectors there are businesses that may never recover and have gone/will go bust but for others the government support and money printing has supported them such that it is the government that is on the hook for the costs not as would otherwise have been the case all of the individual businesses and the worst depression since the 30’s.

With regard to the UK government support and money printing had we done that unilaterally, like Jeremy Corbyn and John McDonnell were proposing our currency would have suffered a similar fate to that of Zimbabwe but what was unique this time was the epic bailouts by governments around the world at the same time which so far appears to have negated the impact we might have expected and how that eventually plays out has been pushed into the distant future.

There is no doubt in my mind that energy consumption will again grow and the likes of BP will recover and as the markets are forward looking that recovery is in being reflected in share prices now.

[irish luck] 14/1/2021 15:36

Skinny
Pfizer Biontech.

Late start today, the whole world is drowning in debt, travel, holiday, retail, pubs etc etc all just living off hand outs, and yet wall street keeps pushing even higher, quiet bizarre really and totally unsustainable by anybody's standards.
Why would you buy stock at this level is beyond me.
No doubt some one will come back and educate me, lol.

PS of course this will not apply to BP

Answers on a picture postcard in Morse code please.

[smurfy2001] 14/1/2021 12:31

My target was 50% but optimism 😁