UK Markets open in 1 hr 50 mins

BP Beefs Up Stake in Lightsource BP, Clean Energy in View

Zacks Equity Research

BP plc BP announced its decision to raise its stake in Lightsource BP. With a 7% additional stake, the British integrated energy giant has boosted its ownership interest in the European solar developer to 50% from the prior 43%.

Notably, Lightsource was rebranded to Lightsource BP after BP had taken over a 43% stake in December 2017. Thus, with the purchase of the business’ newly-issued equity, BP has become a joint venture partner. However, no financial details relating to the transaction have been provided by either company.

The recent move reflects BP’s intention of boosting capital spending on renewable power business as most oil companies in Europe have decided to combat climate change by reducing greenhouse gas and carbon emissions and focusing on clean energy.

BP added that although renewable power business generates relatively lower returns than oil and natural gas operations, alternative energy is not exposed to the volatility in commodity prices. In fact, companies can generate stable returns from renewable power, BP revealed.

Investors should know that the companies have simplified their joint venture structure with the latest agreement. The transaction also unveils Lightsource BP’s plan to develop 10 gigawatts of assets by 2023-end.

Headquartered in London, BP is a leading integrated energy player. Currently, the stock carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space are Murphy USA Inc MUSA, Sasol Limited SSL and CNX Resources Corporation CNX. While Murphy USA and Sasol sport a Zacks Rank #1 (Strong Buy), CNX Resources carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Murphy USA beat the Zacks Consensus Estimate in three of the prior four quarters.

For fiscal 2020, Sasol is likely to post earnings growth of 30%.

CNX Resources surpassed the Zacks Consensus Estimate in two of the prior four quarters. It has a positive earnings surprise of 34.8%, on average, for the trailing four quarters.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CNX Resources Corporation. (CNX) : Free Stock Analysis Report
 
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
 
Sasol Ltd. (SSL) : Free Stock Analysis Report
 
BP p.l.c. (BP) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.