BP raises $1.06B from Aker BP stake sale to cut debt
What's the deal? BP has sold 5% of its 15.9% stake in Norwegian oil and gas producer Aker BPDealroom has a profile for this one. Try Dealroom →, raising about US$1.19B to strengthen its balance sheet. The sale leaves BP with 68.7m shares, a holding of roughly 10.9%.
The terms: BP priced the shares at US$37.6 each, a 12% discount to Aker BP's closing price on the Oslo exchange on Wednesday. Barclays acted as sole global coordinator and bookrunner, with DNB CarnegieDealroom has a profile for this one. Try Dealroom → as co-bookrunner. BP has agreed to a 90-day lock-up on its remaining shares.
Why now? BP, led by chief executive officer Meg O'Neill, is prioritising a simpler portfolio and lower debt. "We believe now is the right time for us to realize part of this value to further strengthen bp's balance sheet, our first priority as we build a simpler, stronger, more valuable bp," she said.
By the numbers: The disposal lifts BP's full-year 2026 divestment-and-other-proceeds target by about $1bn to roughly $9bn. Net debt has fallen to $13.9bn from $22.3bn at the end of the prior quarter, hitting BP's 2027 target a year early.
The backdrop: Last month BP posted third-quarter earnings of $8.5bn, nearly quadrupling from a year earlier, aided by higher oil prices. The Aker BP sale follows the completion of a $6bn deal to sell a 65% stake in lubricants business CastrolDealroom has a profile for this one. Try Dealroom →, while BP also markets North Sea and biogas assets.
What could go wrong? Trimming the Aker BP holding is a portfolio trade-off as well as a debt milestone. The proceeds target is not itself evidence of a lasting turnaround, which depends on cash generation and execution of the wider strategy.
The signal: BP is expected to unveil a fresh long-term strategy in December, after O'Neill took the top role this year, succeeding Murray Auchincloss. The Aker BP sale marks another step in an accelerated balance-sheet repair that is reshaping the company as it moves past earlier debt pressures.
Read more: aol.co.uk
Image credit: Generated with Gemini
