BP Profit Surges as It Puts Biogas Business Archaea for Sale

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessBP Profit Surges as It Puts Biogas Business Archaea for SaleBP Plc said profit soared as it announced it’s put its Archaea Energy biogas business up for sale, adding momentum to Chief Executive Officer Meg O’Neill’s drive to turn the company around after years of underperformance.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — BP Plc said profit soared as it announced it’s put its Archaea Energy biogas business up for sale, adding momentum to Chief Executive Officer Meg O’Neill’s drive to turn the company around after years of underperformance.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountAdjusted net income more than doubled from a year earlier to $5.73 billion in the second quarter, beating the $5.01 billion average analyst estimate compiled by Bloomberg, BP said in a report Tuesday. The bumper result provides a tailwind for Meg O’Neill, who took over in April with a mandate to pivot the business back to oil and gas after years of failed investments in low-carbon ventures. She’s pressing ahead with an overhaul centered on cutting costs, selling assets and repairing the balance sheet.“We are not making the most of our potential,” O’Neill said in the earnings report. “Our performance over the past few years has not met our own expectations, let alone those of our shareholders.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe conflict in the Middle East has provided a boost, as global energy merchants and producers profit from massive trade dislocations, while bigger jumps in fuel costs than in crude prices have lifted refining margins. Peers from Shell Plc to ExxonMobil Holdings Corp. also reported big profits largely due to the market upheaval. But investors are increasingly looking beyond BP’s windfall profits toward the company’s longer-term strategy. Analysts are watching whether cost cuts, portfolio simplification and debt reduction can eventually translate into sustainable earnings growth, higher shareholder distributions and a more competitive valuation compared to peers. O’Neill laid out five priorities for the business, starting with strengthening the balance sheet and simplifying the portfolio.The company reduced its expectations for divestment proceeds this year as it announces plans to sell its UK North Sea and Archaea Energy.BP acquired US biogas producer Archaea for about $4.1 billion in 2022, when the company’s strategy of moving away from oil and gas was in full swing under then-CEO Bernard Looney. Analysts expect BP to sell Archaea for far less money than the company bought it for.(Adds CEO comment and details from fourth paragraph)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.