BP Plc’s market capitalization rose above £100 billion ($121 billion) for the first time in three years as shareholders rewarded the company for a pivot back toward its fossil-fuel origins.
(Bloomberg) — BP Plc’s market capitalization rose above £100 billion ($121 billion) for the first time in three years as shareholders rewarded the company for a pivot back toward its fossil-fuel origins.
The UK oil major has jumped almost 19% in London trading since announcing record annual profit earlier this week and a strategic shift to pump more oil and gas than previously planned, despite the impact on its climate goals.
BP’s decision has been welcomed by investors, who have at times punished European oil companies seeking to diversify into lower-return renewable power. Valuations have lagged behind US peers Exxon Mobil Corp. and Chevron Corp., which have remained primarily focused on fossil fuels.
BP’s recovery bookends a slump during the coronavirus pandemic, when the price of oil plummeted. During that period, the company’s valuation sank below those of European renewable-power behemoths Orsted A/S, Iberdrola SA and Enel SpA. With crude having rebounded, Big Oil is galloping ahead once again.
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