Energy giant BP Plc (NYSE:BP) (GB:BP) has teamed up with Spain’s Iberdrola (ES:IBE) to pour nearly €1 billion into electric vehicle charging infrastructure, according to Bloomberg.
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Through this joint venture, the two companies plan to set up 5,000 EV charging locations in Spain and Portugal by 2025. The figure is expected to rise to nearly 12,000 by the end of 2030. Impressively, these EV charging locations will be completely powered by renewable energy.
While BP has indicated that it will slow the pace of oil and gas output cuts to prioritize energy security, the company is taking major steps in renewable energy. It is assuming full ownership of its solar joint venture, Lightsource BP, by acquiring the remaining 50% stake in the JV for €254 million.
BP plans to utilize the acquired unit for setting up solar plants to support its charging networks, green hydrogen locations, and biofuel initiatives. The energy major also plans to enter the retail electricity market in Japan.
BP’s share price has dropped by nearly 6% over the past month amid changes at its top rung. Bernard Looney, its previous CEO, is under investigation by BP’s Board over a breach of code of conduct. The hunt for a permanent candidate to take up the role is now expected to extend into the first quarter of 2024, according to Reuters.
Is BP a Buy, Sell, or Hold?
Overall, the Street has a Moderate Buy consensus rating on BP, and the average BP price target of $46.07 implies a substantial 27% potential upside in the stock.
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