British energy major BP (LON:BP) could offload some oil projects to align its operations with the Paris accord, Bloomberg News has reported. The update comes ahead of the blue-chip company’s third-quarter results and dividend announcement on October 29.
BP’s share price has fallen deep into the red in today’s session, having given up 2.15 percent to 501.10p as of 15:00 BST. The stock is underperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.41 percent lower at 7,307.62 points. The blue-chip group’s shares have given up just under 10 percent of their value over the past year, as compared with about a 0.5-percent rise in the Footsie.
BP could sell some oil projects
Bloomberg News reported today that BP’s chief executive Bob Dudley plans to sell some oil projects and curb the development of others as the company looks to align its business with the Paris climate change agreement from 2015. The newswire quoted Dudley as saying on a conference call organised by JPMorgan Chase & Co that senior executives had met within the last few days to discuss how to cut carbon.
“We are certain we’ve got a path, it may not be linear, to being consistent with Paris goals,” he pointed out. The news comes after shareholders urged the company to explain how its spending is aligned with the Paris agreement.
Analysts on FTSE 100 group
JPMorgan Chase & Co, which is bullish on the FTSE 100 oil group with a ‘buy’ rating, set a target of 625p on the BP share price today, while Royal Bank of Canada, which, which rates the company as an ‘outperform,’ trimmed its valuation on the shares from 615p to 575p. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 647.81p.