BP divests Gelsenkirchen refinery, increases cost reduction goal

BP will sell its Gelsenkirchen refinery to Klesch Group and has raised its cost-reduction target by about $1 billion to $6.5–$7.5 billion by 2027. The divestment and higher efficiency target should modestly improve BP's cost base and near-term margins, a move that is mildly positive for shareholders and could move BP shares modestly.

Analysis

BP will sell its Gelsenkirchen refinery to Klesch Group and has raised its cost-reduction target by about $1 billion to $6.5–$7.5 billion by 2027. The divestment and higher efficiency target should modestly improve BP's cost base and near-term margins, a move that is mildly positive for shareholders and could move BP shares modestly.