BP Expects Upstream, Downstream Growth
February 28 2017 - 9:34AM
Dow Jones News
By Tapan Panchal
LONDON--BP PLC (BP.LN) said Tuesday it expects both of its major
operating segments -- upstream and downstream -- to deliver
material growth in operating cash flows in the next five years.
Upstream growth is expected to come from major higher-margin
project startups, while the downstream is expected to benefit from
strong marketing-led growth, the company said.
Upstream cash flow is expected between $13 billion and $14
billion and downstream between $9 billion and $10 billion. The cash
flow figures are based on the oil price falling to around $35 to
$40 per barrel in 2021.
The oil company added that it intends to maintain its existing
financial frame throughout the five years to 2021, with organic
capital expenditure within a range of $15 billion to $17 billion a
year and the target band for gearing remaining at 20% to 30%.
At 1351 GMT, BP shares were trading 0.3% higher at 453
pence.
Write to Tapan Panchal at tapan.panchal@wsj.com
(END) Dow Jones Newswires
February 28, 2017 09:19 ET (14:19 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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