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BP fails to clear Shell’s high bar, but energy transition ‘standout achievement’, says Quilter Cheviot

Jamie Maddock, equity research analyst at Quilter Cheviot comments on BP’s latest results:

“Shell’s results set a high bar and while due to the higher oil and gas prices compared to last year BP delivered an impressive out turn, the results were more mixed and only just ahead of expectations. The slightly bumped up share buyback was likewise just ahead of the consensus, so while the results may look strong, relative to peers they are slightly behind.

“The major headline from the results is the swift shift to energy transition as evidenced by the quadrupling in renewable energy capacity since last year. This is a standout achievement and sets out BP’s stall for how it will operate in a net zero world, with it intending to rapidly increase energy transition oriented spend which has also been further bolstered by today’s newly enhanced commitment to reduce operational emissions by 50% by 2030.

“So while results are mixed, BP has taken advantage of rising oil and gas prices, while continuing to look to the future and how it can operate in a lower carbon world.”

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