About BP Solar International Inc.

British Petroleum, better known by its initials BP, is one of the largest oil and gas companies in the world. With proven reserves of 18 million-plus barrels of oil equivalents, BP explores, produces and sells oil and gas, as well as fuels, lubricants, wind power, and biofuels. With presence in 70 counties, it sells 15 million tons of petrochemical products annually through contracts or via 18,300 retail sites. Major company brands include eponymous BP, as well as AMOCO, ampm, Aral, and Castrol.

Operations

BP has two major operating segments, organized via its activities, Upstream, Downstream. A third segment Rosneft is also reporter.

The downstream segment is BP's primary earner, bringing in some 85% of total sales. BP manages the refining, manufacturing, marketing, transportation, and supply and trading of crude oil, petroleum, petrochemicals products and related services to wholesale and retail customers.

Upstream activities (some 15% of revenue) include oil and natural gas exploration, field development and production, transportation, storage and processing. BP also markets and trades LNG and natural gas liquids.

BP has a 20% equity interest Rosneft, the biggest oil producer in Russia, and although reported as a separate operating segment, BP reports no sales under this segment.

BP has other biofuels and wind businesses, shipping and corporate activities worldwide, making up only a tiny fraction of total sales.

Geographic Reach

Upstream, BP is active in the North Sea and the Norwegian Sea, Gulf of Mexico, Canada, Mexico, Brazil, Trinidad & Tobago, Abu Dhabi, Azerbaijan, Australia and East Indonesia. In the US, BP has upstream activities in Alaska, Arkansas, Colorado, New Mexico, Oklahoma, Texas and Wyoming.

Downstream, BP has major refineries in the US North West (Cherry Point), Rockies (Whiting and Toledo), as well as refineries in Germany, Netherlands, Spain, South Africa, New Zealand and Australia.

Close to 55% of BP revenue comes from the US. The rest is spread across the world.

Sales and Marketing

BP primarily sells oil and gas through pipelines and by ship, truck and rail, serving some 12,000 customers across 140 countries annually.

BP has more than 60,000 suppliers, helping it sell 15 million tons of petrochemical products annually through contracts or via 18,300 retail sites.

Major company brands include eponymous BP, as well as AMOCO, ampm, Aral, and Castrol.

With some 2,500 service stations, Aral is one of the most recognized brands in Europe, while BP and Castrol are leading brands of motor oil and lubricants.

US retail brand ampm has more than 1000 locations throughout the US west coast.

Financial Performance

The 2014 oil and commodity price downturn slashed BP revenue from a $380 billion peak in 2013 to a decade-low of $183 billion in 2016. Net earnings plummeted similarly, from a sizable $23 billion in 2013 to a $6 billion loss just two years later. Though net income has crawled back out of the red, profits remains a fraction of BP's typical pre-2014 levels.

BP revenue grew 30% in 2017 to $240 billion, up from $183 billion the year prior. This was primarily due to a $52 billion increase in revenue from its downstream segment, followed by a $13 billion revenue hike from the upstream segment.

Net income shot up from $170 million to $3.5 billion, mostly from improved prices.

Cash holdings increased some $2 billion to a total of $25.5 billion in 2017. Operations provided $19 billion. Investments utilized $14 billion, and a further $3 billion was used up in financing activities. CAPEX was $16.5 billion.

ties.

Strategy

BP has emerged strong from the oil price downturn, announcing 2017 as one of the most successful exploration years, with a decade-high group reserve replacement ratio. The company boosted underlying profits beyond the $6 billion mark and showed exciting downstream growth potential.

Manufacturing and marketing businesses, which BP plans to invest further in, grew noticeably. Premium fuels and lubricants registered impressive volume growth (further partnerships with automakers are upcoming), and convenience retail partnerships are on the upswing.

BP has already increased retail fuel offers in growth markets like Mexico, India, Indonesia. In China, BP entered a joint venture with DongMing Petrochemical for further market penetration.

Upstream, the company has equally ambitious plans of delivering 900,000 barrels of new production per day by 2021, launching some 13 new projects since 2016, including major ones in Trinidad, India and the Gulf of Mexico. To boost production further, BP is eyeing further access to the Santos basin of Brazil.

In July 2018, BP announced plans to acquire oil and gas field assets from BHP Billiton in a $10.5 billion deal. This large-scale acquisition is seen as a second change for BP to enter the American shale boom, which the company missed earlier in the decade due to its 2010 Deepwater Horizon disaster, and its $60 billion bill for cleanup, fines and restitution. 

Though the bold acquisition contains substantial acreage for building thousands of potential wells in the future, the acreage currently yields more gas than oil. Yet, in 2018 natural gas is priced below $3 mmBTU and oil at $70 a barrel. So BP's profitability remains to be seen. 

While BP is not exactly racing to become renewable pioneers any time soon, the company is actively diversifying its portfolio. Along with its three-dozen partnership investments in clean energy, BP recently tied up with the company Lightsource to invest in large-scale solar projects.

BP markets sustainable practices green initiatives rather aggressively, perhaps in the hope of fostering goodwill to mop up the catastrophic damages from its 2010 oil-spill disaster that cost human lives and billions in environmental damages.

Mergers and Acquisitions

In July 2018, BP announced plans to acquire oil and gas field assets from BHP Billiton in a $10.5 billion deal for 470,000 acres, with a reported capacity of 190,000 barrels per day. Majority of the acerage lies in the Eagle Ford, followed by Haynesville, and some in the Permian.

 

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BP Solar International Inc.

150 W Warrenville Rd
Naperville, IL 60563-8473
Phone: 1 (301) 698-4200
Fax: 1 (301) 698-4201

Stats

  • Employer Type: Public
  • Employees: 585

Major Office Locations

  • Naperville, IL