Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  BP plc    BP.   GB0007980591


SummaryAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

BP enters offshore wind with $1.1 billion Equinor deal

share with twitter share with LinkedIn share with facebook
09/10/2020 | 06:01am EDT
FILE PHOTO: Equinor's logo is seen at the company's headquarters in Stavanger

BP entered the offshore wind market on Thursday with a $1.1 billion(844.85 million pounds) deal to buy 50% stakes in two U.S. developments from Norway's Equinor, a significant step by the oil firm towards its energy transition goals.

The British oil and gas company has set itself a target of increasing its renewable power generation capacity 20 fold over the coming decade to 50 gigawatts (GW)..

As part of the deal, BP and Equinor also agreed to form a partnership to develop other offshore wind projects in the United States, Dev Sanyal, BP's head of gas and low carbon energy, told Reuters.

European oil firms are under pressure from activists, banks, investors and some governments to shift away from fossil fuels and analysts say offshore wind farms are probably the quickest way for them to scale up.

The deal includes the Empire Wind project off New York and Beacon Wind off Massachusetts, which could together generate up to 4.4 GW - enough power for more than two million homes.

The Empire project is expected to start operations in the mid-2020s, Equinor's renewables chief Pal Eitrheim told Reuters.

Equinor will be the operator of the two projects and BP staff will join the development and construction phases as part of the two companies' partnership to develop both bottom-fixed and floating offshore wind facilities, he added.

Equinor expects to book capital gains of roughly $1 billion from the transaction, an executive at the state-controlled firm told Reuters.

"It confirms that our strategy to get early access to the U.S. coast was right and it created the value," Equinor's head of renewable energy Paal Eitrheim said.

The $1.1 billion deal, which does not include development spending, is expected to close in early 2021.

BP already has a large onshore wind business in the United States with a capacity of around 1.7 GW, but has refrained in the past from entering the offshore wind market.

The deal challenges any assumption that renewable projects can't offer returns on the scale offered by oil and gas, and is likely to increase the market's confidence in Equinor's offshore wind business, Sparebank 1 Markets analyst Teodor Sveen-Nilsen said.

Empire Wind phase 1 secured an offtake agreement last year and will have between 60 and 80 turbines.

By Nerijus Adomaitis and Ron Bousso

Stocks mentioned in the article
ChangeLast1st jan.
BP PLC -2.84% 232.4 Delayed Quote.-50.72%
EQUINOR ASA -1.71% 138.1 Delayed Quote.-19.80%
LONDON BRENT OIL 0.48% 41.92 Delayed Quote.-36.73%
PAL GROUP HOLDINGS CO., LTD. -2.40% 1100 End-of-day quote.-42.33%
SPAREBANK 1 SMN 0.24% 83.4 Delayed Quote.-16.97%
WTI 0.26% 40.323 Delayed Quote.-35.93%
share with twitter share with LinkedIn share with facebook
All news about BP PLC
02:27pConocoPhillips sees global oil demand returning, executive says
09/23NIKOLA : talks with energy firms stalled after short-seller report - WSJ
09/23Energy executives say U.S. oil production has peaked -Dallas Fed survey
09/23UK shares rise as PM assures jobs protection; BP weighs on oil stocks
09/23Premier Oil seeks another price cut for BP North Sea deal - sources
09/23Vattenfall to focus on offshore wind power projects in Europe
09/23CUE ENERGY RESOURCES : - Ironbark-1 Regulatory Approvals Complete
09/23UK shares rise as PM assures jobs protection; BP weighs on oil stocks
09/22BP : Competition Law In Bahrain
09/21Vitol expects tough second half as oil trading flatlines
More news
Financials (USD)
Sales 2020 188 B - -
Net income 2020 -20 685 M - -
Net Debt 2020 44 545 M - -
P/E ratio 2020 -3,09x
Yield 2020 8,82%
Capitalization 59 674 M 59 544 M -
EV / Sales 2020 0,56x
EV / Sales 2021 0,45x
Nbr of Employees 67 600
Free-Float 93,2%
Chart BP PLC
Duration : Period :
BP plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BP PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 22
Average target price 4,77 $
Last Close Price 2,96 $
Spread / Highest target 134%
Spread / Average Target 61,0%
Spread / Lowest Target -5,22%
EPS Revisions
Bernard Looney Chief Executive Officer & Director
Helge Lund Chairman
Andy Hopwood COO & Executive VP-Upstream Strategy
Murray Auchincloss Chief Financial Officer
Angela Rosemary Emily Strank Chief Scientist & Head-Downstream Technology
Sector and Competitors
1st jan.Capitalization (M$)
BP PLC-49.28%61 424
NESTE OYJ55.19%43 182
PTT-26.14%30 318