BP Stock Rallies Pre-Market After Deal With JERA To Combine Offshore Wind Business: Retail Sentiment Surges

Oil and gas major BP's shares rose over 4% in Monday’s pre-market session after the firm and JERA Co., Inc. agreed to combine their offshore wind businesses to form a new standalone, equally-owned joint venture.

JERA is a 50:50 joint venture (JV) between TEPCO Fuel & Power (a wholly-owned subsidiary of Tokyo Electric Power Company) and Chubu Electric Power Company.

The combined entity will be called JERA Nex bp, which the firm claims will become one of the largest global offshore wind developers, owners and operators. It will have a balanced mix of operating assets and development projects with a total 13GW potential net generating capacity.

Both firms have agreed to provide capital funding of up to $5.8 billion for investments committed till before the end of 2030.

JERA CEO Yukio Kani noted that offshore wind has significant potential and is a critical component of the energy transition.

“The sector is at an inflection point, and we believe the transformative partnership launched today between our two companies combines the resources, capabilities, and network necessary to be a world-class offshore wind company and in doing so, realize the potential of offshore wind globally while positioning this business for long term success,” he said.

The new entity will be based in London, and its CEO will be nominated by JERA and the CFO by BP. On the conclusion of the transaction, offshore wind teams from both JERA and JERA Nex and staff from BP’s offshore wind business will move into the new business.

Following the announcement, retail sentiment for BP jumped into the ‘bullish’ territory (55/100) from ‘neutral’ a day ago.

BP’s Sentiment Meter and Message Volume as of 7:48 a.m. ET on Dec. 9, 2024 | Source: Stocktwits

Shares of BP have lost over 19% on a year-to-date basis.

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