8 February 2022
BP plc update on strategic progress
Transformation to Integrated Energy Company on track, aims to grow earnings through 2030 and accelerate net zero ambition
- Confident in delivering 2025 targets, aiming to grow EBITDA to 2030.
- Aims for EBITDA from resilient hydrocarbons now to be sustained out to 2030.
- Expects investment in transition growth businesses to be over 40% of BP plc capex by 2025.
- Aiming to generate $9-10bn EBITDA from transition growth businesses by 2030.
- BP plc now aiming to be net-zero across operations, production and sales by 2050 or sooner.
BP PLC plc today reports its full year results for 2021 and will also give an update on its strategic transformation, including accelerating its net zero ambition.
The strong progress BP plc has made over the past few years has reinforced its confidence in the delivery of its earnings and returns targets for 2025. In addition, it is now aiming to continue to grow EBITDA through to 2030.
BP plc is now aiming to sustain earnings (EBITDA) from resilient hydrocarbons out to 20301, despite focusing its oil and gas production and refining throughput.
BP plc also expects to increase the proportion of its capital expenditure in transition growth businesses to more than 40% by 2025 and is aiming for around 50% by 2030. It aims to generate earnings of $9-10 billion from these businesses by 20302, driven by five transition growth engines – bioenergy, convenience, electric vehicle (EV) charging, renewables and hydrogen.
Bernard Looney, BP plc chief executive, said: “Over the past two years we have set a new purpose, direction and strategy for BP plc, and completed the largest re-organisation in our history. With this period of change fully behind us, we are now solely focused on driving value through the safe, efficient delivery of our strategy.
“We enter 2022 with growing confidence. The past two years have reinforced our belief in the opportunities that the energy transition presents – to create value for our shareholders and to get to net zero. The need for, and role of, an integrated energy company (IEC) has – to our minds – never been clearer. Underpinning all of this is our steadfast commitment to perform while transforming.”