BP May Do More Deals Since Low-Carbon Energy Is in ‘Doldrums’

(Bloomberg) -- With valuations of low-carbon energy down significantly from the highs of recent years, now may be a good time to invest in the sector.

That was the message from the chief executive officer of British oil major BP Plc after the company reported first-quarter earnings Tuesday. Any decision to expand in that business would follow last year’s move to take full control of its solar-power joint venture.

“With low-carbon energy in the doldrums, now is the time to go countercyclical,” Murray Auchincloss said during a call with investors. “Watch this space. We may do some more things.”

Growth areas such as biogas, biofuels and electrification are some of the most interesting areas for potential deals, the CEO said, but he declined to be more specific.

“I’ll stop myself saying any more than that because my mergers-and-acquisitions team might shoot me if I say anymore,” he said.

The opportunities in low-carbon energy contrast with those in oil, which isn’t attractive at the moment, Auchincloss said.

“With oil at $85 or $90, I’m not sure it’s the right time to be buying,” he said.

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