Funny, how it takes a renowned shareholder activist like Elliott to focus minds. It is revealed the New York hedge fund has become the third-largest shareholder in BP after building a nearly 5 per cent stake at a cost of £3.8 billion, and is agitating for change, and the investment community goes into overdrive.
Elliott has a track record in achieving its agenda, often conducting a protracted campaign of attrition, so the news must be taken seriously. Also, it’s the choice of target. BP is deliberate – Elliott is nothing if not calculating, running the sums backwards and forwards ad infinitum before striking. But BP has been staring everyone in the face for so long, there waiting to be attacked. Now someone has come along and finally done it.
While Elliott has yet to publicly disclose its intentions, what has been the subject of speculation so far is a demand to cut back on renewables. History suggests this will be one of several, that Elliott does not do things by halves. Items high on the agenda could be exiting petrol service stations, selling Castrol lubricants and US shale oil and gas, and dropping EV charging points.
On the list too could be a management overhaul, with a boardroom shake-up and chairman Helge Lund in the line of fire. Again, that could be just for starters. The fact is BP has a lengthy roll-call of issues. Its overall strategy is confusing: is it an oil firm that dabbles in eco or one that is wholly committed to non-fossil fuels? Discuss. The balance sheet is skewed and highly leveraged. The company’s market valuation at £74 billion lags behind its main rivals.
One moment it’s all out for green. Then there’s a change in management. Not so eco. Wait. Oil production is to be reduced by 25 per cent by 2030. So not so fully oil and gas either, not like substantially bigger players such as Exxon Mobil. Arch-rival Shell, also worth a lot more, knows what it’s doing, undergoing an eco rethink and paring down debt. BP meanwhile can’t make up its mind, and despite lowering the bar on renewables has even increased its exposure to solar and biofuel joint ventures.
Elliott’s timing is deliberate, making its move shortly before new chief executive Murray Auchincloss is due to announce a heavily trailed “fundamental reset” next week. Analysts were waiting for that one with weary resignation – there have been so many reviews from BP in recent years that the description has become risible. There has been, too, a revolving door at the top, with Bernard Looney’s hasty departure followed by the appointment of the chief financial officer, Auchincloss.
The jury is out on that one as well, with critics wondering why, if Auchincloss is so good, he was not promoted in the first place. There is also doubt in some quarters about the suitability of a numbers expert to run a sprawling empire the size of BP. Poring over spreadsheets is one thing; motivating a vast workforce, not to mention an army of stakeholders, is another.
The one consistent through an unedifying period in terms of sharpness and direction of travel is Lund. That’s why his head may be on the Elliott wishlist. Lund’s cause is not helped by his chairing of Denmark’s £274 billion Novo Nordisk, maker of the weight-loss medication Wegovy. Juggling two massively demanding and prestigious jobs is never a good look, no matter how much you make the case for being able to do them both, and only leaves you vulnerable.
Investors are dissatisfied, to say the least. Their shares in BP are down 2 per cent year on year, whereas Shell is up 9 per cent. Still, Elliott is the one to fire the gun.
Speculation is hardening on the notion that something much more “fundamental” than the one billed may be in order. While comparisons are made with Shell, the other UK oil major is not without its weaknesses.
By common consent, chief executive Wael Sawan has done an excellent job since taking charge in January 2023. But Shell remains resolutely down the global valuation chart and carries an admired but underappreciated air – so much so that Sawan has spoken of moving the company’s primary listing to the US if there is no improvement.
What this points to, and what Elliott may have started, is agitation for a Shell-BP merger. For those who like to fly the flag it would create a single British “champion”, with a combined staff of 180,000 and shared exploration interests in the Gulf of Mexico – sorry, the Gulf of America – and Iraq. Their trading arms could also be successfully combined into one.
More importantly, it would form an oil corporation of sufficient scale to compete on the world stage. Aramco has a market capitalisation of £1.4 trillion, Exxon Mobil is next on £378 billion. Then would come the new Shell-BP, at £237 billion, putting it above Chevron’s £222 billion and PetroChina at £159 billion. It would be a heavyweight global player, in other words, which at present Shell, and most definitely BP, are not.
The great practical benefit would be in borrowing costs. That muscle would enable the UK behemoth to borrow cheaply, certainly at lower rates than those charged to Shell and BP currently. Extracting oil is an expensive activity that requires plenty of capital. Shell-BP would be playing on a more level playing field, still behind Aramco and Exxon Mobil but up there.
Investment bankers are excited at the prospect – possibly the fees to be made from engineering the complex marriage are also playing a part. Doubtless, there would be sadness at the disappearance of a company which, when all's said and done, remains a historic great British entity, a household name that requires no introduction anywhere. But needs must, this is what globalisation does, and right now BP and to a much lesser extent Shell, are looking internationally lightweight.
Who knows, a union might not be in the tight-lipped Elliott’s plans, but the desired transformation may ultimately prove more wholesale than anything even it envisaged.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
LA LIGA FIXTURES
Friday (UAE kick-off times)
Real Sociedad v Leganes (midnight)
Saturday
Alaves v Real Valladolid (4pm)
Valencia v Granada (7pm)
Eibar v Real Madrid (9.30pm)
Barcelona v Celta Vigo (midnight)
Sunday
Real Mallorca v Villarreal (3pm)
Athletic Bilbao v Levante (5pm)
Atletico Madrid v Espanyol (7pm)
Getafe v Osasuna (9.30pm)
Real Betis v Sevilla (midnight)
Killing of Qassem Suleimani
Results
Stage seven
1. Tadej Pogacar (SLO) UAE Team Emirates, in 3:20:24
2. Adam Yates (GBR) Ineos Grenadiers, at 1s
3. Pello Bilbao (ESP) Bahrain-Victorious, at 5s
General Classification
1. Tadej Pogacar (SLO) UAE Team Emirates, in 25:38:16
2. Adam Yates (GBR) Ineos Grenadiers, at 22s
3. Pello Bilbao (ESP) Bahrain-Victorious, at 48s
THE%20SWIMMERS
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3%20Body%20Problem
%3Cp%3E%3Cstrong%3ECreators%3A%3C%2Fstrong%3E%20David%20Benioff%2C%20D%20B%20Weiss%2C%20Alexander%20Woo%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EBenedict%20Wong%2C%20Jess%20Hong%2C%20Jovan%20Adepo%2C%20Eiza%20Gonzalez%2C%20John%20Bradley%2C%20Alex%20Sharp%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
The Travel Diaries of Albert Einstein The Far East, Palestine, and Spain, 1922 – 1923
Editor Ze’ev Rosenkranz
Princeton
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
Countdown to Zero exhibition will show how disease can be beaten
Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a month before Reaching the Last Mile.
Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.
Sri Lanka-India Test series schedule
- 1st Test India won by 304 runs at Galle
- 2nd Test Thursday-Monday at Colombo
- 3rd Test August 12-16 at Pallekele
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The Beach Bum
Director: Harmony Korine
Stars: Matthew McConaughey, Isla Fisher, Snoop Dogg
Two stars
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
The nine articles of the 50-Year Charter
1. Dubai silk road
2. A geo-economic map for Dubai
3. First virtual commercial city
4. A central education file for every citizen
5. A doctor to every citizen
6. Free economic and creative zones in universities
7. Self-sufficiency in Dubai homes
8. Co-operative companies in various sectors
9: Annual growth in philanthropy
if you go
The flights
Flydubai flies to Podgorica or nearby Tivat via Sarajevo from Dh2,155 return including taxes. Turkish Airlines flies from Abu Dhabi and Dubai to Podgorica via Istanbul; alternatively, fly with Flydubai from Dubai to Belgrade and take a short flight with Montenegro Air to Podgorica. Etihad flies from Abu Dhabi to Podgorica via Belgrade. Flights cost from about Dh3,000 return including taxes. There are buses from Podgorica to Plav.
The tour
While you can apply for a permit for the route yourself, it’s best to travel with an agency that will arrange it for you. These include Zbulo in Albania (www.zbulo.org) or Zalaz in Montenegro (www.zalaz.me).
Miss Granny
Director: Joyce Bernal
Starring: Sarah Geronimo, James Reid, Xian Lim, Nova Villa
3/5
(Tagalog with Eng/Ar subtitles)
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
The BIO:
He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal
He ascended Mount Everest the next year from the more treacherous north Tibetan side
By 2015, he had completed the Explorers Grand Slam
Last year, he conquered K2, the world’s second-highest mountain located on the Pakistan-Chinese border
He carries dried camel meat, dried dates and a wheat mixture for the final summit push
His new goal is to climb 14 peaks that are more than 8,000 metres above sea level
A cryptocurrency primer for beginners
Cryptocurrency Investing for Dummies – by Kiana Danial
There are several primers for investing in cryptocurrencies available online, including e-books written by people whose credentials fall apart on the second page of your preferred search engine.
Ms Danial is a finance coach and former currency analyst who writes for Nasdaq. Her broad-strokes primer (2019) breaks down investing in cryptocurrency into baby steps, while explaining the terms and technologies involved.
Although cryptocurrencies are a fast evolving world, this book offers a good insight into the game as well as providing some basic tips, strategies and warning signs.
Begin your cryptocurrency journey here.
Available at Magrudy’s , Dh104
BUNDESLIGA FIXTURES
Saturday (UAE kick-off times)
Cologne v Union Berlin (5.30pm)
Fortuna Dusseldorf v Borussia Dortmund (5.30pm)
Hertha Berlin v Eintracht Frankfurt (5.30pm)
Paderborn v Werder Bremen (5.30pm)
Wolfsburg v Freiburg (5.30pm)
Bayern Munich v Borussia Monchengladbach (8.30pm)
Sunday
Mainz v Augsburg (5.30pm)
Schalke v Bayer Leverkusen (8pm)
The specs: 2018 Maxus T60
Price, base / as tested: Dh48,000
Engine: 2.4-litre four-cylinder
Power: 136hp @ 1,600rpm
Torque: 360Nm @ 1,600 rpm
Transmission: Five-speed manual
Fuel consumption, combined: 9.1L / 100km
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
Killing of Qassem Suleimani
Opening Rugby Championship fixtures: Games can be watched on OSN Sports
Saturday: Australia v New Zealand, Sydney, 1pm (UAE)
Sunday: South Africa v Argentina, Port Elizabeth, 11pm (UAE)
RESULTS
2pm: Handicap (PA) Dh40,000 (Dirt) 1,000m
Winner: AF Mozhell, Saif Al Balushi (jockey), Khalifa Al Neyadi (trainer)
2.30pm: Maiden (PA) Dh40,000 (D) 2,000m
Winner: Majdi, Szczepan Mazur, Abdallah Al Hammadi.
3pm: Handicap (PA) Dh40,000 (D) 1,700m
Winner: AF Athabeh, Tadhg O’Shea, Ernst Oertel.
3.30pm: Handicap (PA) Dh40,000 (D) 1,700m
Winner: AF Eshaar, Bernardo Pinheiro, Khalifa Al Neyadi
4pm: Gulf Cup presented by Longines Prestige (PA) Dh150,000 (D) 1,700m
Winner: Al Roba’a Al Khali, Al Moatasem Al Balushi, Younis Al Kalbani
4.30pm: Handicap (TB) Dh40,000 (D) 1,200m
Winner: Apolo Kid, Antonio Fresu, Musabah Al Muahiri
The Details
Article 15
Produced by: Carnival Cinemas, Zee Studios
Directed by: Anubhav Sinha
Starring: Ayushmann Khurrana, Kumud Mishra, Manoj Pahwa, Sayani Gupta, Zeeshan Ayyub
Our rating: 4/5
