UK-based oil major BP has announced its results for the second quarter, with them being ahead of analysts’ expectations.
The company has been perceived as underperforming in relation to comparable rivals, making it the focus of activist investors and takeover rumours. In response, BP intends to reduce its costs and debt by divesting assets worth $20 billion by 2027. It has already agreed to sell its US business for onshore wind power and its integrated mobility business in the Netherlands. It is also currently looking for a buyer for the Castrol business, which makes coolant, metalworking and lubricant products for a range of applications.
The chief executive officer of BP, Murray Auchincloss, said that both strategically and operationally, it had been a good second quarter for the company. He added:
“We are delivering on our plan to grow the upstream and focus the downstream with reliability across both at >96%. So far this year we’ve brought five new oil and gas major projects onstream, sanctioned four more and made 10 exploration discoveries, including the significant discovery in the Bumerangue block in Brazil.”
He also highlighted a roughly 50% rise in the customers and products division’s underlying earnings, along with strong trading performance despite a challenging market.
Despite already achieving $1.7 billion of its planned $4–5 billion cuts in costs, Auchincloss announced there would be a further cost review. He also said the company’s business portfolio would be reviewed to make sure it is generating value for shareholders, insisting that BP is capable of delivering more for investors.
