BP outlines turnaround

28 Feb, 2008

Oil giant BP Plc said it was "quietly" addressing performance flaws with a restructuring that it said should add billions of dollars in profits each year and may lead to the sale of its green energy business.
"We have made significant progress at BP over the past 10 months, quietly and without fuss, in resetting essential context, in establishing sound, practical objectives and beginning to deliver them," Chief Executive Tony Hayward said. Hayward also said BP was considering how best to realise the value of the Alternative Energy business, which was much prized by his predecessor, John Browne.
"We intend to grow this business predominantly for its equity value," he said.
"Taking stock market valuations for similar companies, we estimate it is already worth between $5 billion and $7 billion. As we go forward we will be looking at how best we can realise that growing value for our shareholders." A spokesman said the unit could also be sold in parts but added nothing was on the cards currently. He denied the shift in the way BP views the operations was a lessening in commitment to renewable energy.

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