bp records $18.1 billion loss in 2020
The collapse in oil prices coupled with the impact of the pandemic which hit transport, demand and margins have been attributed to bp's $18.1 billion loss in 2020, its first loss in a decade.
An underlying profit of $115 million for Q4 was the one bright spot, rising from $86 million in Q3, though commentators said this fell short of analysts' expectations. The impact of COVID-19 is most tangible when you consider the company recorded a $3.5 billion profit in 2019.
CEO Bernard Looney said it was a pivotal year, launching a net zero ambition, setting a new strategy to become an integrated energy company and creating an offshore wind business in the US.
bp and Equinor recently completed the formation of their strategic US offshore wind partnership, which includes bp’s $1.1 billion purchase from Equinor of a 50% stake in two major lease areas off the US East Coast (click here).
Looney said it began the process of "reinventing bp" with nearly 10,000 staff being laid off. Its global divestment continues with bp selling its 20% interest in Oman’s Block 61 to PTT Exploration and Production Public Company Limited (PTTEP) of Thailand for $2.6 billion yesterday, though it retains a 40% stake.
"We strengthened our finances – taking out costs and closing major divestments. And through all of this, the underlying operations of the company remained safe – one of our safest years – and reliable, and major new projects were brought on line," he said.
"I appreciate our team’s commitment to deliver the energy the world needed and am grateful for the support we received from investors and the communities where we work. We expect much better days ahead for all of us in 2021."
Together with Eni, Equinor, National Grid, Shell and Total, it has formed the Northern Endurance Partnership (NEP) to develop the offshore infrastructure to transport and store millions of tonnes of CO2 emissions safely in the UK North Sea.
With bp as operator, the infrastructure will serve the proposed Net Zero Teesside and Zero Carbon Humber projects that aim to establish decarbonized industrial clusters in Teesside and Humberside.
Global Offshore rebrands Enelift and invests in global hubs
Global Offshore has rebranded Enelift and will invest "a seven-figure sum" in establishing new support hubs in Houston, Dubai, Singapore, Perth and the Caspian during the next six months.
The investment will cover oil, gas and renewables, mainly concentrating on manufacturing capability with associated R&D, as well as in stock held in the hubs.
The company’s flagship Hinge Lok technology provides aluminium, non-welded light weight transportation cradle for casing and tubing. Enelift now plans to enhance its offering by augmenting its existing solutions with robotics and remote operational and training technology, which will reduce manpower for handling offshore equipment that is transported and stored using the Hinge Lok system.
Enelift is partnering with "a Japanese robotics company" and the technology will be trialed with "a Norwegian operator on a Norwegian drilling rig", according to a statement.
Operating from its bases in Aberdeen, UK and Esbjerg, Enelift was founded by 35-year industry veteran and Managing Director Paul Brebner 10 years ago to offer the offshore energy industries safe, reliable and efficient storage and transportation of equipment.
The expansion plans are bolstered by the appointment of Jim Clark of the Craigendarroch Group to Chairman, and Adam Maitland to Non-Executive Director. Maitland is the Managing Director of Hutcheon Mearns IF, and brings his wealth of expertise in the field of corporate finance.
Brebner said Enelift may be a new name in the market, but the experience it brings is "industry renowned".
"Our solutions are underpinned by safety that enables inefficiencies and their associated costs to be eradicated – meaning operational personnel can focus doing what they do best, safely. We remain committed to providing the safest storage and transportation solutions for equipment in the sector as we grow our global operations," he said.
Clark said the market is changing and its solutions fully support customers’ economic and safety aspirations.
"We are very well placed to take full advantage of increasing opportunities in the Middle East, Africa, Far East and Americas. Safety is our absolute commitment to our customers and our support hubs will facilitate this. Aligning our identity to our entire offering ensures that we will drive our expansion through new products and global support sites across the rest of this year."