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BP Plc (LSE:NYSE:BP) remains confident in reaching its $20 billion disposal target with several deals expected to be announced "relatively soon," according to the company’s CEO Murray Auchincloss during a virtual call hosted by RBC.
The oil major’s asset sales program is running slightly above its annual average rate, with a near-term focus on infrastructure assets where BP sees significant interest.
Processes are ongoing for the Gelsenkirchen refinery, while the Lightsource divestment is set to launch imminently and the TANAP pipeline sale is expected to close in the second quarter.
The closely watched Castrol lubricants business, which generates approximately $1 billion in adjusted EBITDA (or $1.3 billion excluding corporate costs), continues through its sale process.
With reported price estimates between $8-10 billion according to Reuters, BP remains confident in executing the transaction.
On capital expenditure planning, BP’s 2025 guidance stands at $14.5 billion, with $13.8 billion being organic spending.
The CEO noted flexibility exists in several areas including approximately $500 million in exploration, about $1 billion in unsanctioned major projects, and adjustments possible in the U.S. onshore business where current spending is around $2.4 billion annually.
Regarding market conditions, BP indicated that refining margins may remain strong as the industry faces a particularly heavy global maintenance season this year.
Low inventories, increased turnarounds, and potential OPEC+ production additions that could pressure crude prices all create favorable conditions for refiners globally, according to RBC’s assessment.
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