What's Going On With British Oil Giant BP Stock Friday?

BP p.l.c. BP shares are trading lower today. The company entered into a memorandum of understanding (MoU) with the Iraqi Government to discuss a major redevelopment initiative for the Kirkuk region.

This program will focus on investments in oil and gas, power generation, solar energy, and additional exploration activities.

The MoU signed today covers the Kirkuk area, including the Baba and Avanah domes, as well as the Bai Hassan, Jambur, and Khabbaz fields. These assets are managed by the North Oil Company (NOC) of the Government of Iraq.

Under today’s MoU, BP also plans to explore investments in power generation and introduce solar power facilities in the region. Negotiations are anticipated to conclude by early 2025.

Murray Auchincloss, bp chief executive officer, said, “This MoU builds on bp’s strategic and longstanding relationship with Iraq. We see today’s signing as an important step towards the potential further development of this critically important area. It aligns with bp’s six clear priorities and is in support of our drive to deliver as a simpler, more focused, higher value company.” 

Apart from this, BP has completed its acquisition of GETEC ENERGIE GmbH, a major energy supplier to commercial and industrial customers in Germany. The agreement for this acquisition was announced in January 2024.

The acquisition of GETEC ENERGIE GmbH will enhance BP’s European gas and power footprint and create opportunities to expand integrated lower-carbon energy solutions for commercial and industrial customers in Germany and across Europe.

Earlier this week, BP reported Q2 FY24 adjusted EBITDA of $9.64 billion, with underlying RC profit per ADS at $1.00, beating estimates of $0.92.

The company announced a 10% increase in interim dividend and completed $1.75 billion in share buybacks.

Investors can gain exposure to the stock via Direxion Hydrogen ETF (ARCA: HJEN) and First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (ARCA: EIPX).

Price Action: BP shares are down 0.32% at $34.65 premarket at the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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