BP reported to be considering sale of renewable power operations
Sat 01 March 2008
View all news
Press reports say that BP is considering floating or selling all or a part of its renewable power operations, believed to be worth up to $7bn (£3.5bn). In a strategy briefing to City analysts, BP's Chief Executive Tony Hayward said he planned to review the position of BP Alternative Energy which had been nurtured by his predecessor Lord Browne.
The suggested change in strategy will be seen by green critics as a further move back to petroleum, according to a report in The Guardian.
On the renewable power business, Mr Hayward said: "What we will be doing over the course of the year will be looking at ways of realising that value for shareholders because none of us believe that there is very much of that, if anything, in our share price today".
Despite moves into the carbon-heavy oil sands and this latest possible sell-off, BP said it was as committed as ever to renewables. It highlighted the acceleration of $8bn of spending originally earmarked for new technologies.
According to The Guardian's report, sources close to the group said the BP boss's drive to realise value from alternative energy was more likely to mean disposing of a stake in the business than an all-out sale and that either possibility is 'some way off'.
Related Links
< Back to news list