Back to top

Image: Bigstock

BP Signs MoU to Develop Green Hydrogen Facility in Egypt

Read MoreHide Full Article

BP plc (BP - Free Report) signed a memorandum of understanding (“MoU”) with the government of Egypt to explore the possibilities for building a renewable hydrogen production facility in the country.

Per the MoU, BP will assess the technical and commercial feasibility of developing a large-scale green hydrogen export hub in Egypt. The company will explore high-potential locations across the country for renewables as part of the survey.

Egypt has exceptional renewable energy assets. BP invested more than $35 billion in the country over the years. The company operates the West Nile Delta gas development. It also has a strong presence in the East Nile Delta through its Pharaonic Petroleum Company, joint venture and other partners’ operating assets. The company currently produces about 70% of Egypt’s gas.

Hydrogen is considered one of BP’s five energy transition growth drivers. The company is engaged in a portfolio of options for developing green and blue hydrogen projects in advantaged markets globally. This includes potential developments in the U.K., the Netherlands, Germany, Spain, the Middle East, the United States and Australia.

Green hydrogen is expected to play a key role in transitioning from hydrocarbons to more sustainable alternatives. It is produced by the electrolysis of water, powered by renewable energy.

Expanding its business scope in Egypt validates BP’s long-term commitment to the country. The MoU depends on Egypt’s attempt to be a regional energy hub and support the country’s energy transition plans.

Last month, BP signed another MoU with the government of Mauritania to explore the potential for green hydrogen production in the country. BP is currently involved in the global green and blue hydrogen projects, including H2Teesside and HyGreen Teesside, two major projects being developed in the U.K.

Price Performance

Shares of BP have outperformed the industry in the past six months. The stock has gained 4.5% against the industry’s 0.1% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Key Picks

BP currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Phillips 66 (PSX - Free Report) is the leading player in each of its operations, like refining, chemicals and midstream, in terms of size, efficiency and strengths. PSX’s third-quarter 2022 adjusted earnings per share of $6.46 beat the Zacks Consensus Estimate of $4.98.

Phillips 66 is expected to see an earnings rise of 255.6% in 2022. Phillips 66’s board of directors authorized a $5-billion increase to its stock repurchase program, bringing the total share repurchases authorized since 2012 to $20 billion. This represents Phillips 66’s strong focus on returning capital to stockholders.

Murphy USA Inc. (MUSA - Free Report) is a leading independent retailer of motor fuel and convenience merchandise in the United States. MUSA’s third-quarter 2022 earnings per share of $9.28 beat the Zacks Consensus Estimate of $7.82.

Murphy USA is expected to see an earnings surge of 76.3% in 2022. In more good news for investors, MUSA’s board of directors recently declared a quarterly cash dividend of 35 cents per share to its common shareholders of record as of Nov 8. The payout, which marks a 9% sequential increase, will be made on Dec 1.

Liberty Energy Inc. (LBRT - Free Report) offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America. LBRT’s third-quarter 2022 earnings per share of 78 cents beat the Zacks Consensus Estimate of 63 cents.

Liberty is expected to see an earnings surge of 298% in 2022. As of Sep 30, 2022, Liberty had $298 million of available liquidity, including $24 million cash on hand and supported by the revolving credit facility. LBRT’s debt-to-capitalization stands at just 15.2% compared with most peers hugely burdened with debts.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


BP p.l.c. (BP) - free report >>

Murphy USA Inc. (MUSA) - free report >>

Phillips 66 (PSX) - free report >>

Liberty Energy Inc. (LBRT) - free report >>

Published in