BP Amoco To Sell $10B in Assets
Jul. 15, 1999
LONDON (AP) _ BP Amoco PLC plans to sell an estimated $10 billion in assets over the next three years as part of a drive toward improving efficiency and boosting profits.
Chief executive John Browne told investors today the company also plans to slash costs by 20 percent by 2001 and to increase capital spending over the same period.
The combined effects of this restructuring could produce an additional $5.1 billion in annual pretax profits starting in 2001, Browne said.
BP Amoco was formed from British Petroleum's purchase last year of Chicago-based Amoco Corp.
About $3 billion of the assets being sold will come from sales of petroleum products, Browne said.
BP Amoco is aiming to reduce supply costs by an additional $2 per barrel by the end of 2001. If successful, the effort would yield annual cost savings of $4 billion.
The company has also set a ceiling on its debt levels, which are not to exceed 30 percent of total assets, he said.