Bulletin: BP's Strategy Reset, Refocus On Cash Flow Generation And Deleveraging Could Support Ratings Upside

This report does not constitute a rating action. MADRID (S&P Global Ratings) Feb. 27, 2025--S&P Global Ratings said today that delivery of the new financial targets in BP's announced strategy revision could be credit positive and support improvement in its credit rating over time. Reduction in low carbon energy capital spending (capex), combined with increased capex in core upstream, should support improvement in free cash flow generation and deleveraging efforts. The company is now also targeting to strengthen its balance sheet, aiming to reduce reported net debt (without leases and hybrids) to $14 billion-$18 billion by 2027, from the current $23 billion. BP's adjusted debt is the highest among the supermajors, estimated at more than $65 billion at the end

...February 27, 2025 This report does not constitute a rating action. MADRID (S&P Global Ratings) Feb. 27, 2025--S&P Global Ratings said today that delivery of the new financial targets in BP's announced strategy revision could be credit positive and support improvement in its credit rating over time. Reduction in low carbon energy capital spending (capex), combined with increased capex in core upstream, should support improvement in free cash flow generation and deleveraging efforts. The company is now also targeting to strengthen its balance sheet, aiming to reduce reported net debt (without leases and hybrids) to $14 billion-$18 billion by 2027, from the current $23 billion. BP's adjusted debt is the highest among the supermajors, estimated at more than $65 billion at the end of 2024. To achieve the debt-reduction target, the company has committed to divestments worth $20 billion by the end of 2027, including potential disposal of the Gelsenkirchen refinery. BP has started a strategic review...

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