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BP Approves Sale of Its London Office Amid Restructure Plan

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BP plc. (BP - Free Report) has reportedly entered into an agreement with Hong Kong investment firm Lifestyle International Holdings Ltd. to divest its London headquarters. The transaction is valued at $332 million, which stems from the British energy giant’s broader plan to get rid of assets worth $25 billion by 2025.

Per Reuters, for two years, the integrated energy player has also decided to lease the London-based 1 St James’s Square property back from Lifestyle International.

Importantly, the company already sold or agreed to divest around 50% of the assets worth $25 billion that it plans to sell. It aims to allocate proceeds from the massive divestment program toward reducing its debt burden and investing in low-carbon projects.

It is to be noted that theEurope-based energy giant is striving to establish itself as a net zero emissions company by 2050. To turn this goal into reality, the energy giant has decided to lower emissions from its operations related to oil and natural gas to zero. The integrated energy firm also plans to reduce the carbon intensity of the energy products it sell by half to achieve the goal. Overall, with a strong focus on low-carbon projects, BP is aiming to capitalize on the mounting demand for cleaner energy across the world since it has become a challenge to meet the energy need, while reducing greenhouse gas emissions.

Company Profile & Price Performance

Headquartered in London, U.K., BP is a fully integrated energy company, with a strong focus on renewable energy. The company’s shares have underperformed the industry in the past six months. Its stock has lost 11.2% compared with the industry’s 2.1% decline.

 

 

Zacks Rank & Stocks to Consider

BP currently carries a Zack Rank #3 (Hold). Some better-ranked players in the energy space are HighPoint Resource Corporation and DCP Midstream Partners (DCP - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy), and Enerplus Corporation (ERF - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, the Zacks Consensus Estimate for HighPoint Resource’s 2020 earnings has been raised by 17.2%.

DCP Midstream is expected to see earnings growth of 183.4% in 2021, while Enerplus is likely to see earnings growth of 400% next year.

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