BP PLC on Wednesday said it expects its Downstream unit to deliver between USD9.00 billion to USD10.00 billion of free cash flow in 2021, with returns of around 20%.
In addition to the USD3.00 billion of earnings growth already delivered between 2014 and 2016, BP's plans are to deliver more than USD3.00 billion of further underlying earnings growth over the next five years.
Across marketing, BP expects to grow underlying earnings by more than USD2.00 billion by 2021 compared to 2016. Meanwhile, across manufacturing, BP expects to grow underlying earnings by more than USD1.00 billion by 2021 compared to 2016.
BP said it will continue to maintain a rigorous focus on cost management and efficiencies while capturing profit growth opportunities. As part of efforts to simplify and streamline the business, by the end of 2016, the company had already reduced the number of roles across the Downstream arm by more than 5000 versus 2014 levels.
This is a year ahead of schedule. BP said it has plans in place that reduce this further to 6,500 by the end of 2018.
BP said the company is exploring opportunities presented by electrification, connected cars and autonomous vehicles. The company already has electric car charging facilities at selected petrol stations such as in Auckland, New Zealand, where the charging facilities have been developed in partnership with Vector.
BP said the company is looking to learn from these installations to explore the best model to pursue across the company's global network.
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