Energy major BP will continue to expand its fuel and convenience segment and grow sales from its EV charging business over the next two years, Chief Executive Murray Auchincloss said Tuesday.

In a call with analysts, Auchincloss said 2023 gross margin for the global major's convenience business rose 9% year to year, excluding its acquisition of 288 sites of TravelCenters of America, citing the roll-out of "strategic convenience sites" and partnerships.

The major's strategic convenience sites are those that it expects would drive profit growth. It expects strategic sites to rise to 3,000 in 2025, up from 2,850 in 2023.

Auchincloss said BP continues to integrate its recently acquired convenience assets in North America, including ampm, Thorntons and TravelCenters, adding that he expects synergies and higher efficiencies from those acquisitions.

On EV charging, the major said its installed charge points increased by 35% year to year in 2023 and energy sold through the charge points jumped 150% during the period. BP now has about 29,000 charge points globally, and it expects to grow to 40,000 by 2025.

Auchincloss said BP would focus on its convenience electrification business on four countries, namely the U.S., U.K., Germany and China, adding that he expects BP's EV business to turn a profit in 2025.

In a note Tuesday, UBS analysts expect BP to succeed in the EV charging business given its existing fuel marketing sites, improved convenience offering and current partnerships with automakers like Tesla that would allow the rollout of fast-charging networks quickly.

"Few companies have access to the land and electricity needed to provide chargers on the same scale as BP, while there is further synergy potential coming from the integration of chargers with the existing convenience and trading businesses, which should be seen as additional upside," UBS said.


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--Reporting by Frank Tang, ftang@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com


(END) Dow Jones Newswires

02-06-24 1742ET