BP/Shell

[88V8]

In view of this morning's developments, thinking of BP and its 19.75% stake in Rosneft, it would seem worth trading out of BP into Shell.
Even though BP are down 5% as I write and Shell down only 1%.

Assuming of course that one wants the big oilies, which I do for their divi streams.

Thoughts?

V8

[BullDog]

In view of this morning's developments, thinking of BP and its 19.75% stake in Rosneft, it would seem worth trading out of BP into Shell.
Even though BP are down 5% as I write and Shell down only 1%.

Assuming of course that one wants the big oilies, which I do for their divi streams.

Thoughts?

V8

Sit tight and wait? 6 months time, it'll be business as usual.

[moorfield]

In view of this morning's developments, thinking of BP and its 19.75% stake in Rosneft, it would seem worth trading out of BP into Shell.
Even though BP are down 5% as I write and Shell down only 1%.

Assuming of course that one wants the big oilies, which I do for their divi streams.

Thoughts?

V8

Sit tight and wait? 6 months time, it'll be business as usual.

Yep. Let the BP board of directors worry about that, just keep topping up.

[88V8]

Just sold about 40% of my BP holdings and put the proceeds plus a smidgeon more into Shell.
If I had a time machine I could rehash the day and buy Shell lower and sell BP higher but heyho.

Still have BP's prefs BP.A and BP.B, no danger of price collapse there.

V8

[RockRabbit]

This has the potential to get very messy very quickly for BP (and expensive).

1. BP are under strong HMG pressure to dispose of their Russian assets. But who will buy them other than the Russians (or Chinese), who will demand a massive discount.

https://www.bbc.co.uk/news/business-60526891

2. Reputational Risk. Rosneft appears to be a major supplier to the Russian military. Supplying fuel to Russian tanks killing Ukrainian civilians may rather stuff up their ESG objectives.

https://thenyledger.com/markets/bp-unde ... sian-army/

[daveh]

Indeed, but remember where the Rosneft stake came from. BP had its own Russian based oil company, the Russian government "nationalised" it and the Rosneft stake was the payment.

[RockRabbit]

Indeed, but remember where the Rosneft stake came from. BP had its own Russian based oil company, the Russian government "nationalised" it and the Rosneft stake was the payment.

I don't think it matters where the stake came from - BP appears to profiting from their relationship with Russia which is involved in a European war on the opposing side to us. The speed at which things are progressing could make this a big problem for BP. Their stake may even be confiscated without compensation.

[RockRabbit]

Its being reported that BP is to withdraw from Russia - I'm still seeking definitive confirmation.

This will be expensive.

[AsleepInYorkshire]

Its being reported that BP is to withdraw from Russia - I'm still seeking definitive confirmation.

This will be expensive.

Just confirmed they are selling their 19.75% in Rosneft

AiY(D)

[mike]

Its being reported that BP is to withdraw from Russia - I'm still seeking definitive confirmation.

This will be expensive.

Just confirmed they are selling their 19.75% in Rosneft

AiY(D)

Here's Jim Pickard of the FT on this

https://twitter.com/PickardJE/status/1497980539483172872?cxt=HHwWkMC9habX8skpAAAA

Extract

huge breaking news at BP:

- BP to exit its 20% stake in Russian oil giant Rosneft

- BP chief executive Bernard Looney to resign from board of Rosneft with immediate effect

[...]

the next question is of course who will the buyer be and at what price

[mike]

The Pickard twitter thread above has been updated with figures - BP will write down up to $25bn at the end of the first quarter as a result of the Rosneft exit

- firstly a non-cash adjusting item charge of $14bn representing the gap between fair value of the shareholding and its carrying value

- secondly a non-cash adjusting item charge arising $11bn from foreign exchange losses since 2013

[scrumpyjack]

The BP directors on the Rosneft board have resigned, which they obviously had to do ASAP. But disposing of the Rosneft stake will some time by which time the situation in Ukraine should be clearer. I can't see how it is possible to sell their Rosneft shareholding quickly. For one thing, with Swift closed to them, the Russians could not pay for it. It must be in Bp's interests to just put it all on ice and wait 6 months. Hopefully by that time Adolf Putin will have fallen. What a sh?t he is!

[AsleepInYorkshire]

Hopefully by that time Adolf Putin will have fallen. What a sh?t he is!

Nope you're not quite there yet ... he's a murdering coward and I question his lineage and I hope the fleas of a thousand camels [expletive deleted] infest his crotch tonight.

BP will not be taking a dividend from their stock in Rosneft. And they haven't ruled out the stock could yet be seized.

AiY(D)

[absolutezero]

The decision to divest Rosneft wasn't a hard one.
It's practically worthless. Putin et al will likely just nationalise it without compensation anyway.

You own Russian* assets until the Russians* say you don't own them any more.
*See also Chinese.