BP Mulls Electricity Investments to Continue Momentum

BP reported good financial results in the second quarter of 2014, with its BP Global Investments subsidiary mulling further investments in the electricity sector.

‘Underlying replacement cost profit for the quarter of 2014 was $3.6 billion, 34% higher than the $2.7 billion reported for the same period in 2013 and 13% higher than the $3.2 billion result for the first quarter of 2014,’ reads a note released on Tuesday. 

“This was another successful quarter, delivering both operational progress and robust cash flow. We are continuing to ramp up the major new projects that drive delivery of cash flow and are also now seeing benefits from our focus on operating with greater reliability and efficiency,” Bob Dudley, BP group chief executive, commented. 

However, in the document, the company did not mention tensions in relation to the situation in Ukraine and the new round of sanctions against Russia. Despite the positive results, it is indeed clear that the company has to show some form of vitality and that financial performance could increasingly come under threat. Investments are likely, the most logical way to stave off complications in relation to its assets in Russia. 

‘Iberdrola Generación has entered into an agreement to sell its 25% stake in Bahía Bizkaia Electricidad (BBE) to BP Global Investments, owner of 50% of the company until now.  The estimated value of the transaction amounts to €111 million but the final figure will depend on possible adjustments to the price, a regular practice in this type of operations,’ Iberdrola wrote on Wednesday.

Bahía de Bizkaia Electricidad is a combined cycle electric power plant located beside the Bahía de Bizkaia Gas regasification terminal, in the Outer Area of the Port of Bilbao (Punta Lucero, Zierbena), Spain.