Ramco Energy (or soon to be SeaEnergy Renewables) provided an interesting news item. Per BBC Report, Ramco plans to sell off its Oil & Gas business to focus exclusively on Wind energy. Nothing to special here but Stephen Remp (Executive Chairman) laid out the rationale: “cleantech and green-focused investment funds were reluctant to invest in the group while it retained its focus on oil and gas”.
This provides an interesting case study for many ‘traditional’ energy companies. In principal, CEOs are likely to come under more scrutiny to make a commitment either or. Although Investment Dollars clearly sit with CleanTech funds today, and this is likely to increase rather than decrease, the choice is not easy.
As I mentioned in my last post, IDC Report on Electric Utilities, today is more about long-term strategy and Organizational Change than short-term Shareholder concerns around near-term profitability. The question is are market forces agreeing with the change? I guess the future share price will tell us.