BAKU, Azerbaijan, Oct.27
By Leman Zeynalova – Trend:
Net debt of BP at the third quarter-end was $40.4 billion, down $0.5 billion, Trend reports citing BP.
“This includes the impact of the $1.1 billion payment for the completion of the joint venture with Reliance. Net debt is expected to fall in the fourth quarter as proceeds from divestments are received,” the company said in its latest report. A dividend of 5.25 cents per share was announced for the quarter.
The company expects $25bn divestment proceeds 2H20-2025 − $5bn petchems sale expected to complete 4Q20.
The 3Q20 cash balance point stood at around $42/bbl. The company said it is on track to deliver $2.5bn pre-tax cash cost savings by end-2021. Around $3-4bn of pre-tax cash cost savings are expected by 2023.
The company’s absolute cost base is expected to reduce by around 40 percent by 2023 vs 2014.
BP is on track for organic capex of about $12bn in 2020. It expects capex at lower end of $13-15bn range including inorganics in 2021. The company is focused on capital efficiency and returns.
BP continues to make progress towards its target of $2.5 billion in annual cash cost savings by end-2021 compared with 2019, with its new organization on schedule to be in place by start of 2021.
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