4. BP p.l.c. (NYSE:BP)
Number of Hedge Fund Investors: 40
Forward P/E ratio as of August 10: 7.94
BP p.l.c. (NYSE:BP) is a well-known energy company involved in the exploration, refining, marketing, supply, and production of oil and natural gas products. The company also generates solar energy and is one of the largest manufacturers of terephthalic acid which is used for making plastic bottles, food containers, and textiles. BP p.l.c. (NYSE:BP) holds a significant market presence across nine industries including Oil Drilling, Gas Extraction, Petroleum Refining, Lubricant Oil manufacturing, and Oil Pipeline Transportation. BP p.l.c. (NYSE:BP) has a diverse range of brands across various energy and chemical sectors. The primary BP brand is recognized for fuel and lubricants, while Aral serves as a major fuel and lubricant brand in Germany. Castrol is a leading name in automotive and industrial lubricants. In the aviation sector, Air BP supplies fuel and services. The company also operates a BP Chargemaster for electric vehicle charging.
BP p.l.c. (NYSE:BP) has positioned itself ahead of competitors in the shift to renewable energy and plans to reduce its oil and gas production by 25% by 2030 as part of its carbon emissions reduction plan. BP p.l.c. (NYSE:BP) is collaborating with companies all around the world in its journey towards net zero and is investing heavily in lower-carbon initiatives, in which investments have risen by approximately 3% in 2019 to 23% by 2023. BP p.l.c.’s (NYSE:BP) strategic focus on renewables has enhanced its ability to lead in the energy transition and capitalize on emerging market opportunities.
On July 10 BP p.l.c. (NYSE:BP) confirmed that it plans to acquire a 10% stake in the Ruwais liquefied natural gas (LNG) project led by Abu Dhabi National Oil Company (ADNOC) in Al Ruwais Industrial City, Abu Dhabi to develop competitive gas positions and expand its LNG portfolio. On July 15, BP p.l.c. (NYSE:BP) was also awarded funding jointly by the German Federal Ministry for Economic Affairs and Climate Action and the Lower Saxony Government for a 100MW industrial-scale green hydrogen project. The project is located adjacent to BP p.l.c.’s (NYSE:BP) Lingen Refinery in Germany and will be the company’s first fully owned and operated large-scale green hydrogen plant. The project aims to produce 10-11 kilotons of green hydrogen annually and will supply energy to its Lingen refinery as well as industrial customers in the region. BP p.l.c.’s (NYSE:BP) Head of Germany, Patrick Wendeler, while expressing gratitude for the government support said:
“Today’s announcement underscores bp’s commitment to Germany as we progress our ‘and, not or’ strategy. Our Lingen refinery has helped provide German industry with the energy it needs for more than 70 years. Decarbonising German industry is a significant challenge, and we are grateful to the German government for helping us – alongside the green hydrogen projects from the IPCEI Hy2Infra wave – to play a small but role in helping solve that challenge. With this funding, we’re a step further towards progressing our green hydrogen project in Lingen that would enable us to provide low carbon hydrogen to industrial customers and our Lingen refinery in the future.”
BP p.l.c. (NYSE:BP) is one of the best undervalued UK stocks to buy now. The company operates in over 80 countries worldwide and is leading the energy transition in Europe. BP p.l.c. (NYSE:BP) is trading at a forward P/E ratio of 7.94 which is a 31.60% discount compared to the industry average of 11.68. Analysts have given the stock a Buy rating with an average price target of $42.73, which implies an upside of 22.25% from current levels. As of the first quarter, the stock is held by 40 hedge funds with stakes worth $2.07 billion. Fisher Asset Management is the largest stakeholder in the company and has a position worth $773 million, as of March 31.
