6-K
1
a4699u.htm
BP UPDATE ON PROGRESS TOWARDS NET DEBT TARGET
a4699u
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
for the
period ended 06
April, 2021
BP p.l.c.
(Translation
of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file
annual
reports
under cover Form 20-F or Form 40-F.
Form
20-F |X| Form 40-F
---------------
----------------
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of
1934.
Yes No
|X|
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press
release
6 April 2021
bp provides update on progress towards $35 billion net debt
target
bp
today provides an update on the expected timing of reaching its $35
billion net debt target including the delivery of disposal proceeds
and performance during the first quarter of 2021.
"We are pleased to announce that we now expect to have reached our
$35 billion net debt target during the first quarter 2021. This is
a result of earlier than anticipated delivery of disposal proceeds
combined with very strong business performance during the first
quarter. We look forward to updating the market at our first
quarter results, including further information on share
buybacks."
Bernard Looney, chief executive officer
Delivery of disposal proceeds
During
the first quarter bp has received around $4.7 billion of disposal
proceeds. This includes approximately:
- $2.4
billion from the completion of the sale of a 20% interest in Oman's
Block 61;
- $1.0
billion as the final payment from the sale of bp's global
petrochemicals business to INEOS;
- $0.7
billion from the sale of a 49% interest in a controlled affiliate
holding certain refined product and crude logistics assets onshore
US; and
- $0.4
billion from the sale of an interest in Palantir - a significant
return on our initial investment.
bp
now expects disposal proceeds in 2021 to be at the top end of the
previously announced $4-6 billion range.
bp's
target of $25 billion of disposal proceeds between the second half
of 2020 and 2025 is now underpinned by agreed or completed
transactions of around $14.7 billion with approximately $10.0
billion of proceeds received.
Progress towards $35 billion net debt target
bp's
net debt at the end of the fourth quarter 2020 was $38.9
billion.
As
disclosed at the time of the fourth quarter 2020 results, net debt
was expected to increase in the first half of 2021, driven by:
severance payments spread across both quarters; the payment to
Equinor following completion of the US offshore wind joint venture
which occurred during the first quarter; and the ~$1.2 billion
pre-tax annual Gulf of Mexico oil spill payment scheduled for the
second quarter.
Reflecting
the delivery of disposal proceeds and the very strong business
performance in the first quarter 2021, driven by trading, the price
environment and resilient operations, bp now expects to have
reached its net debt target of $35 billion during the first quarter
2021.
On
reaching this net debt target, bp is committed to returning at
least 60% of surplus cash flow to shareholders by way of share
buybacks, subject to maintaining a strong investment grade credit
rating.
Further
information, including in relation to share buybacks, will be
provided with bp's first quarter 2021 results, expected to be
reported on Tuesday 27 April.
Further information:
This
announcement includes inside information as defined in Article 7 of
the Market Abuse Regulation No. 596/2014. The person
responsible for arranging the release of this announcement on
behalf of BP p.l.c. is Ben Mathews, Company Secretary.
Contact:
bp press office: bppress@bp.com,
+44 (0)7831 095541
Cautionary statement:
In
order to utilise the 'safe harbor' provisions of the United States
Private Securities Litigation Reform Act of 1995 (the 'PSLRA'), bp
is providing the following cautionary statement. This announcement
contains certain forward-looking statements - that is, statements
related to future, not past events and circumstances - which may
relate to one or more of the financial conditions, results of
operations and businesses of bp and certain of the plans and
objectives of bp with respect to these items. These statements are
generally, but not always, identified by the use of words such as
'will', 'expects', 'is expected to', 'aims', 'should', 'may',
'objective', 'is likely to', 'intends', 'believes', 'anticipates',
'plans', 'we see' or similar expressions.
In
particular, among other statements, bp's expectation to have
reached its $35 billion net debt target during the first quarter
2021; expectations for disposal proceeds in 2021 to be at the top
end of a $4-6 billion range; statements and expectations regarding
bp's target of $25 billion of disposal proceeds between the second
half of 2020 and 2025 including expectations in respect of the
completion of agreed transactions and timing of the receipt of
disposal proceeds; expectations regarding the impact and timing of
severance payments and the annual Gulf of Mexico oil spill payment;
statements regarding the triggering of the commitment to return at
least 60% of surplus cash flow to shareholders by way of share
buybacks subject to maintaining a strong investment grade credit
rating; expectations for bp to provide further information
including in relation to share buybacks with bp's first quarter
2021 results; and expectations regarding the date on which bp's
first-quarter 2021 results will be released, are all forward
looking in nature. By their nature, forward-looking
statements involve risk and uncertainty because they relate to
events and depend on circumstances that will or may occur in the
future and are outside the control of bp. Actual results may differ
from those expressed in such statements, depending on a variety of
factors including the extent and duration of the impact of current
market conditions including the significant drop in the oil price,
the impact of COVID-19, overall global economic and business
conditions impacting our business and demand for our products as
well as the specific factors identified in the discussions
accompanying such forward-looking statements and other factors
discussed under "Risk Factors" in our most recent Annual Report and
Form 20-F and in any of our more recent public
reports.
Our
most recent Annual Report and Form 20-F and other period filings
are available on our website at www.bp.com or can be obtained from
the SEC by calling 1-800-SEC-0330 or on its website at
www.sec.gov.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
