Monday, April 14, 2008

BP Getting out of the Renewable Energy Business?

BP who last year teamed with University of California Berkley and the University of Illinois in announcing a 10 year $500 millon grant, some analysts are predicing BP will be reducing their holdings in renewable energy:

Analysts have been predicting a shift away from renewable energy for London-based BP (NYSE: BP) since former CEO Lord Browne stepped down in May 2007. That shift is now underway as CEO Tony Hayward cuts costs and moves more money into petroleum in order to improve BP’s competitiveness in the refining business. At Hayward’s first analyst presentation since assuming the CEO role, he announced a $1.5 billion investment in the company’s alternative energy operations, but hinted that the company may sell off the “green” segment of its business altogether. Hayward referred to the investment as a way to build equity, valuing the “green” unit at $5 billion to $7 billion. “As we go forward we will be looking at how best we can realize that growing value for our shareholders,” he stated.

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