BP Plc (BP)

[eFinanceMarkets]

BP plans no new refineries, will focus on retail to boost cash flow by $3B
BP (BP +0.2%) has no plans to build new refineries and will focus on modernizing existing plants while expanding its network of filling stations to generate $3B in additional cash, the company's head of refining tells Reuters.
Tufan Erginbilgic, who became BP's downstream chief in 2014, says the company's attitude to refining remains cautious even though production is set to spike as new fields become operational.
Erginbilgic says BP's push to modernize and streamline BP's refining, trading and marketing activities generated $5.6B in free cash flow last year, up 25% from 2014 despite refining margins at 12-year lows, and is aiming for a $3B increase in free cash flow by 2021.
The downstream chief also says he wants to expand BP's trading activities using long-term deals on third-party oil and products; BP already trades 5M-plus bbl/day of oil and refined products, exceeded only by rival Royal Dutch Shell and trading house Vitol.