BP stock price
BP’s stock price (LON:BP) fell 2.09% on Tuesday after a strong earning period in April, reaching 318.5p in April. The upward movement of the FTSE 100 Oil Giant came alongside rising prices for Brent crude and West Texas intermediate. Over a longer period, BP share performance is good. Since the beginning of the year, its stock has risen 21.4%. The company’s annual meeting is expected tomorrow, and the recent announcement of its intention to buy back its shares will put investors in close care.
Annual General Meeting
BP’s annual meeting is scheduled for tomorrow, Wednesday, May 12th, with oil giants calling for reworking their carbon emissions plans and making bigger cuts that follow the Paris Climate Agreement more closely . The purpose of BP is to reduce production by 40% by 2030 along with Net-Zero Target, but in addition to improving renewable capacity, its emissions are expected to rise over the same period.
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There is a controversy heading to the meeting as CalPers, a prominent investor group, has decided to oppose BP’s climate resolution.
BP has previously said the plan is in line with the goals of the Paris Climate Agreement and “aligns with Paris’ goals,” and is a dramatic change from the past. “Back to the drawings on strategies, goals and objectives, it added that shareholders will “disrupt our business plans” as they vote against the resolution.
Redrawing that plan could have a negative impact on the financial future, but it cannot further defer investors who want to see their commitment to action on emissions. Whatever the outcome, it will be interesting to see the reactions from investors.
Debt reduction and stock buybacks
In an effort to impress investors, BP stated its commitment to acquire shares this year as the company lowered its debt levels faster than expected. The news comes as BP announced earlier this month that it expects it to reach its $35 billion net debt target in the first quarter of 2021.
The estimates are the results of revenue and “very strong quarters” earlier than expected from disposal, the oil company said last week. At the end of 2020, BP had a $39 billion debt pile. The company previously expected to cut its debt to $35 billion by 2022.
“As accelerating our country’s revenues, we have generated strong cash flows, with strong business performance and a recovery in the price environment, reaching our net debt targets a year earlier,” said CEO Bernard Runey. states.
