Anger over BP’s plan to “abandon oil and gas pledge”
BP is facing a backlash following reports this morning that it has abandoned its target to cut oil and gas production by 2030.
As covered earlier (see 8.10am), Reuters is reporting that CEO MurrayAuchincloss is focused on projects in the Middle East and the Gulf of Mexico to boost output, rather than cutting oil and gas output by 25% by the end of the decade.
Philip Evans, Greenpeace UK senior climate campaigner, says:
“This is yet further proof that we cannot leave the future of our planet in the hands of fossil fuel bosses. It’s clear that BP CEO Murray Auchincloss is hell-bent on prioritising company profits and shareholder wealth above all else as extreme floods and wildfires rack up billions of dollars in damages, destroying homes and lives all over the world.
“Oil companies cannot be trusted to curtail their further destruction of the planet. We desperately need the UK government and leaders around the world to step in to bring these companies under control, put an end to their expansion, and place bold new polluter taxes on them to pay for the damage they are doing around the world.”
James Alexander, CEO of UKSIF (the UK Sustainable Investment and Finance Association) is also unimpressed, saying:
“Most oil and gas majors have consistently failed to invest enough into transition technologies, setting targets and making claims that have often been abandoned or debunked.
The transition will not wait for them. The gap they have left is already being filled by renewables companies. It is increasingly dawning on investors that oil and gas companies that refuse to engage properly in the transition represent an unacceptable investment risk.”
ReclaimFinance stewardship campaigner AgatheMasson is urging shareholders to rein BP’s board in, saying:
“BP is throwing any pretence of climate action out of the window in pursuit of increased production, despite its previous ambition to cut production of oil and gas. BP might be happy to see the planet burn in the name of profits, but investors must take a longer view and reject this climate-wrecking strategy.
They must vote against the re-election of directors at the AGM to oppose this strategy, and act in the interests of net zero by refusing to provide new investments for fossil fuel developers. “
TGI Fridays will remain on UK high streets following a rescue deal for the chain, but more than 1,000 staff have lost their jobs with the immediate closure of 35 restaurants.
Breal Capital and Calveton UK have acquired 51 restaurants after the group’s previous operator fell into administration.
It means that nearly 2,400 jobs have been saved across the US-themed restaurant and cocktail bar, but 35 restaurants not included in the sale have closed, leading to 1,012 redundancies.
The Daily Mirror have a list of the 35 TGI Fridays stores to close, following the sale of part of the chain today.
They are:
More than 1,000 staff at TGI Fridays have been made redundant
Administrators at Teneo have said that 35 TGI Fridays restaurants were not included in the sale and have been closed immediately, resulting in 1,012 redundancies.
Online shopping group Very could soon be up for sale too.
Sky News are reporting that the board of Very Group – now chaired by Nadhim Zahawi, the former chancellor – is lining up Barclays, JP Morgan and Morgan Stanley to handle a strategic review of its ownership options.
The process could result in the Barclay family ending its lengthy involvement with the business, Sky say, adding:
A refinancing of the business, which counts the global investment giant Carlyle and Abu Dhabi-based IMI among its lenders, is also a possibility, according to insiders.
They added, though, that a sale was more likely, with bidders expected to be courted on the basis of Very’s technology-driven financial services arm as well as the core retail offering which sells everything from electrical goods to fashion.
Exclusive: Very Group, the online shopping platform owned by the Barclay family and chaired by Nadhim Zahawi, the ex-chancellor, is lining up Barclays, JP Morgan and Morgan Stanley to handle a strategic review that could lead to a sale worth about £2.5bn. https://t.co/Ig9XEwJEVt
Breal and Calveton are planning to “modernise” TGIFridays – a chain known for its loaded potato skins, wings, burgers and cocktails.
A spokesperson for the new owners said:
“We are delighted to be working with such an enthusiastic and committed Management Team to both modernise the business and capitalise on the heritage of this iconic Brand.”
Full list of TGI Fridays UK restaurants remaining open:
TGI Fridays have provided a list of the restaurants saved from closure through today’s sale to Breal Capital and Calveton UK.
They are:
TGI Fridays sold, saving over 2,000 UK jobs
Breaking: More than 2,000 jobs have been saved at TGI Fridays restaurant chain, after private equity firms Calveton and Breal Capital stepped in to buy part of the chain.
The deal will save 51 of TGI Friday 87 UK restaurants, which should secure employment for almost half of the company’s 4,500 employees.
Julie McEwan, chief executive of TGI Fridays UK, says:
“TGI Fridays is a much-loved brand with a rich heritage. The news today marks the start of a positive future for our business following a very challenging period for the casual dining sector as a whole. We look to the future with confidence that the TGI Fridays brand will continue to attract loyal and new guests.
“We are devastated for our colleagues who will be leaving TGIs and thank them for their loyalty and contribution during their time with us. We are doing everything possible to retain our team and support those impacted.
“We would like to thank our team and our loyal guests for supporting us during this transition. We are proud to serve millions of customers across the UK and are committed to continuing to evolve our proposition and to give our guests a great value for money experience that keeps them coming back to enjoy TGI Fridays time and again.”
But, the sale of part of TGIFridays’ estate suggests that many staff have lost their jobs.
The Unite union have posted that staff have been reported being locked out of sites today with no notice, in what it calls “frankly appalling behaviour”.
🚨 BREAKING 🚨
Mass immediate closures at @TGIFridays across the UK.
Members have been furiously contacting us all morning in response to news that:
🤯Staff have been shut-out of sites & padlocks changed. 😡 Zero notice or redundancy consultation. 😤 Workers invited to head…
BP’s CEO Murray Auchincloss may hope to close the valuation gap with its rivals in the energy industry by watering down its commitment to sustainability goals.
Russ Mould, investment director at AJ Bell, says:
“BP may feel it is being punished by the market for a strategy which included a 25% cut to oil and gas output by 2030 – already down from the original 40% reduction outlined in 2020 – so it appears this plan will now be ripped up completely.
“The problem with reducing hydrocarbon production is it generates most of the cash which allows BP to reward shareholders with dividends and share buybacks. There is speculation that BP will not only scrap the output reduction plan, but it will also seek to increase the volume of oil and gas it produces by investing in geographies like the Middle East and Gulf of Mexico
“Auchincloss needs to demonstrate he has a genuine plan apart from not doing what the market doesn’t like. If the reporting is correct, the company can expect to catch significant flak from regulators, politicians and environmental campaigners. However, that is probably easier to ignore than a stagnant share price.
JLR reports sales drop
Carmaker Jaguar Land Rover has reported a drop in sales in the last quarter, as it was hit by shortages of aluminium and a drop in demand in Europe and China.
JLR sold 103,108 units in the second quarter of the year, compared with 12 months earlier.
That included a 29% rise in sales in the UK, and a 9% rise in North America. However, sales fell by 22% in Europe, and by 17% in China.
JLR repors that its production in the last quarter fell by 7% year-on-year, as a result of “supply disruptions from a key high‑grade aluminium supplier” that affected multiple manufacturers.
That supplier was Switzerland’s Novelis, whose factory was hit by flooding in early August.
JLR also adds that a temporary hold was placed on around 6,500 vehicles, largely in the UK and Europe, at the end of September for additional quality control checks.
LME defeats Elliott Management in nickel crisis court battle
Jane Croft
The London Metal Exchange (LME) has won a legal victory at the court of appeal against a hedge fund which sued over its decision to cancel billions of dollars worth of nickel trades.
Hedge fund ElliottAssociates had appealed an earlier court decision which found that the LME had acted lawfully over its decision-making during a crisis in the nickel market in March 2022 when there was a dramatic and unprecedented spike in nickel prices.
At the time the LME decided that the market had become disorderly, and that nickel trading should be suspended.
Elliott sued the LME at the high court alleging that the cancellation of trading was unlawful and outside the scope of the LME’s powers, and had violated Elliott’s human rights as it had caused the hedge fund to lose net profits of $456m. However the high court ruled last November that the LME’s decision had been lawful.
The hedge fund appealed but the court of appeal has now rejected its appeal on all grounds.
In the court’s ruling, Lord Justice StephenMales, one of the three judges, ruled that “the cancellation was lawful as a matter of domestic law.”
He said:
“That was a once in a generation event. To have allowed the 8 March trades to stand would have meant a real risk of what has been graphically described as a ‘death spiral’ in the international metals market…”
A rescue deal for the UK arm of TGI Fridays has been struck, with two private equity groups to buy 51 restaurants – although a further 35 outlets are to close
The UK operator of TGI Fridays revealed last month it had entered administration as it scrambled to sell its chain of 87 restaurants across the country.
