From the Skyman, writing in his CityAM column on May 2…
GLENCORE BOARD SIZING UP HAYWARD
What is it about former BP chief executives and the top boardroom post at Glencore, the commodities trader?
Vallares, Tony Hayward’s new investment vehicle, sounded out the Financial Services Authority about its $2.1bn deal to buy Genel Energy, the FT reports, to alleviate any corporate governance concerns. Rodney Chase, the non-executive chairman of the newly enlarged Vallares, which is expected to enter the FTSE 100, said he had talked to the FSA about the make-up of the board. Mehmet Sepil, Genel’s chief executive, was fined £967,000 ($1.5m) by the FSA last year for “market abuse” after buying shares in London-quoted Heritage Oil on the back of a positive drilling report before it had been released to the market. Read more
More on Tony Hayward’s first big oil deal at his new investment vehicle Vallares– the $2.1bn acquisition, via a reverse takeover, of Turkish E&P company Genel Energy.
Tony Hayward, the former chief executive of BP, is in the early stages of setting up an investment fund focused on the energy sector, in a move that would mark his return to the UK corporate scene after leaving the oil group after last year’s Gulf of Mexico accident, reports the FT. The talks remain at an early stage and an investment fund is only one of a number of options Mr Hayward is considering, people close to him stressed on Monday. He has also been in talks to become the senior independent director of Glencore, the commodities trader, when it lists. Read more
Tony Hayward, who quit BP as chief executive late last year, is in talks to join Glencore’s new board if the world’s largest commodities trader proceeds with an expected $50bn-$60bn listing in London in the second quarter, reports the FT. The talks suggest that Hayward is close to re-emerging as a key executive in the natural resources sector after criticism of his leadership during BPs oil spill disaster in the Gulf of Mexico last year. Hayward recently met Ivan Glasenberg, Glencore chief executive, to discuss the possibility of joining the potential new board as a non-executive director. Separately, the FT examines Glencore’s plans and notes that Chip Goodyear, former CEO of miner BHP Billiton, also held talks with the company. Read more
The incoming boss of BP has been striking a confident tone in recent meetings with City analysts, reports FT Alphaville. The message that Bob Dudley has been keen to convey is that BP is financially sound, the provisions made against the costs of dealing with the aftermath of the Macondo spill should cover the liabilities, and the $30bn disposal programme is going well, according to analysts. And while BP has not made any decision on the optimal size or shape of the business going forward, there is an acknowledgement that it has to change. Read more
Tony Hayward, BP’s recently resigned chief executive, has told the Wall Street Journal that he is unrepentant about how the energy giant responded to the US’s largest offshore oil spill. Hayward said he had done everything possible once the Deepwater Horizon rig exploded and sank in the Gulf of Mexico, including taking responsibility for the spill, and spending billions of dollars to stop the spewing oil and clean up the shoreline. “I became a villain for doing the right thing, but I understand that people find it easier to vilify an individual more than a company,” he said. Hayward stepped down from the post of CEO last week, and has since been replaced by Robert Dudley. Read more
Legislation that will crimp offshore drilling practices in the oil industry will arrive in the House of Representatives on Friday, Reuters reports, three months on from a BP well explosion in the Gulf of Mexico threw deep-water drilling into crisis. BP’s outgoing CEO Tony Hayward has meanwhile defended his much-criticised handling of the Gulf spill response in an interview with the WSJ — though expressed the hope that his departing the company will enable BP to rebuild in the US. Read more
BP on Tuesday reported one of the largest quarterly losses in UK corporate history, losing $17bn after tax in the second quarter after taking a $32.2bn charge for costs related to its Gulf of Mexico oil spill disaster, the FT reports. The net cost however is offset by a $10bn reduction in its tax payments, mostly in the US. The UK oil group also unveiled plans to sell $30bn of assets, as it confirmed the departure of its chief executive, Tony Hayward. Read more
BP plans to sell assets worth $30bn (€23bn, £19bn) to meet the costs of its massive oil spill in the Gulf of Mexico, and has confirmed the departure of its chief executive Tony Hayward, the FT reports. The firm’s American managing director Bob Dudley will take charge in October. Dudley has a daunting strategic task ahead of him, the WSJ says, in dealing with the future of the energy giant’s US operations.
Indeed, BP posted a record loss of $17.2bn in its second-quarter results due to $32.2bn pre-tax provisions for costs from the spill, Bloomberg reports. The company is turning into a well-functioning litigation-offset machine — but its future as an oil company is as unclear as ever, FT Alphaville says. Read more
You’d think, having ditched a chief executive and posted a record loss — and planned $30bn worth of asset sales — a company’s stock couldn’t possibly be as equipoised as BP’s was on Tuesday:
Then again, the costs facing BP from the Gulf oil spill were priced in a long time ago. Or have they? Read more
BP’s board voted on Monday to appoint Robert Dudley, as chief executive to replace Tony Hayward from Oct 1, as the UK oil group seeks to rebuild after the biggest oil spill disaster in US history, reports Bloomberg. Meanwhile, the FT says, Hayward is expected to be offered a directorship at TNK-BP, the group’s Russian joint venture. Dudley, BP’s managing director for the Americas and Asia, has been overseeing BP’s response to the spill. In an editorial comment, the FT says that his appointment is just the start of changes required at BP. Read more
Tony Hayward, the departing chief executive of BP, is expected to be offered a directorship at TNK-BP, the group’s Russian joint venture, when he leaves the mulitnational oil group in the autumn, the FT says. BP had not yet made any formal statement on Hayward’s position by early Monday evening UK time and the company’s board was still meeting to make a final decision, but people close to the company said it was expected that his departure would be mutually agreed. Hayward is expected to be replaced by Bob Dudley, the managing director for the Americas and Asia, who has been overseeing BP’s response to the spill for the last six weeks. Read more
Bob Dudley will become the first American to head BP, pending an announcement on Tuesday, the WSJ reports, as the energy giant positions itself to move beyond the oil spill in the Gulf of Mexico with a change of leadership. The outgoing chief executive Tony Hayward was negotiating his departure with BP’s board on Monday, the UK’s Daily Telegraph said.
Dudley, who currently serves as BP’s managing director, will provide a clean slate, plus expertise at dealing with political issues, according to the NYT. Hayward, meanwhile, lost his battle to stay on for longer after intense criticism of his crisis role, the FT says. Read more
BP is set to announce the departure of Tony Hayward, its chief executive, in the next 24 hours and is likely to name Bob Dudley, BP’s managing director for the Americas, as his successor reports the FT. Hayward is likely to stay on for two months while the UK oil company seals its leaking oil well in the Gulf of Mexico, but then depart with a £1m pay-off and a £10m pension pot. The board is set to finalise its decision on Monday as it prepares for BP’s Q2 results announcement on Tuesday. Bloomberg adds that Dudley is ready to take the helm on Oct 1 as the company’s first American chief. Read more
Introducing the Macondo ‘Costometer’ from Citigroup.
Unfortunately you can’t manipulate the data, but it could be used as the basis for a spreadsheet. Read more
Top BP executives including CEO Tony Hayward face public grilling after the US presidential commission investigating the Gulf of Mexico oil spill decided to hold hearings in affected states, reports the FT. Bill Reilly, co-chair of the commission, acknowledged concerns that the hearings, to begin July 12 at a 500-seat venue in New Orleans, could become like a public trial, but said that local residents must be heard. Read more
. . . because BP could try to protect shareholder value by de-merging its US operations.
That’s the view of Unicredit, which reckons a split is something that the board of BP has to consider, given that its business model (think deepwater exploration, the Gulf of Mexico, technical excellence) has been shredded by the Macondo oil spill: Read more
At BP’s sprawling campus in suburban Sunbury-on-Thames and in the elegant halls of its headquarters in St James’s Square, Mayfair, the realisation that the company was in deep trouble set in about a week ago, two months after the deadly explosion of the Deepwater Horizon rig in the Gulf of Mexico, says the FT. Read more
Tony Hayward, BP’s chief executive, plans to travel to Russia to reassure Dmitry Medvedev, its president, that the UK oil group will not collapse amid its Gulf of Mexico oil-spill disaster, reports the FT. The move comes as BP is expected to announce on Monday that the cost of containing and cleaning up the spill has risen to $2bn so far. BP’s chief was in the UK at the weekend, as BP’s board met on Sunday to discuss ways to boost the group’s warchest to cover spill-related claims and try to restore investor confidence. Options under discussion include a $10bn bond offering and a further $10bn of asset sales. These come on top of the $10bn sales mooted last week, alongside suspension of the dividend for three quarters and cutting capital expenditure. Read more
When BP finally resummes dividend payments after the 2010 moratorium how much can cash are shareholders expect to receive? The answer, via the dividend swaps market, is a lot less than the 56 cents (or 14 cents a quarter) BP has paid for the past couple of years, reports FT Alphaville. Read more