In This Article:
BP plc BP, the UK-based energy major, announced plans on Thursday to divest its mobility and convenience business in Austria, marking a strategic shift under CEO Murray Auchincloss' reset strategy. The move is part of the company's broader efforts to streamline operations and focus on core assets.
BP to Exit Austrian Retail and EV Charging Business
The divestment will include more than 260 retail sites across Austria, along with BP’s Austrian fleet business, electric-vehicle (EV) charging infrastructure, and its stake in the Linz fuel terminal joint venture. The decision aligns with BP’s focus on optimizing its downstream business while allowing a new owner to unlock the full potential of these assets.
Emma Delaney, BP’s EVP of customers and products, highlighted the strong position of BP’s Austrian retail business, which has grown to become the second-largest major branded fuel retailer in the market. However, she stated that BP now aims to focus on reshaping its downstream business, believing a new owner will be better positioned to maximize the business’s potential. Despite the planned sale, BP assured customers that service quality at its Austrian sites will remain unaffected during the transition.
BP’s $20 Billion Asset Disposal Strategy
BP’s decision to exit Austria is part of a wider $20 billion asset disposal program set through 2027. The company is scaling back its renewable energy commitments while increasing investment in oil and gas, marking a notable shift from its previous energy transition goals. This shift was outlined in BP’s February strategy update, where it emphasized capital discipline and portfolio rationalization.
BP Targets Q3 Sales Agreement for Austrian Assets
The marketing process for the Austrian assets has commenced, with BP aiming to secure a sales agreement by the end of the third quarter. This move aligns with the company’s ongoing efforts to optimize its global presence and redirect resources toward more strategic investments.
The sale underscores BP’s evolving approach to energy, striking a balance between traditional fossil fuel operations and strategic investments in alternative energy sources. As the company continues to reshape its portfolio, investors and industry stakeholders will closely watch its execution of the broader restructuring strategy.
BP’s Zacks Rank & Key Picks
BP currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, NextDecade Corporation NEXT and W&T Offshore, Inc. WTI. While Archrock presently sports a Zacks Rank #1 (Strong Buy), NextDecade and W&T Offshore carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.