BP Sells German Refinery, Boosts Cost Cuts

The divestment aims to position BP as a "simpler, more focused, higher-value company" and address investor concerns regarding its energy transition strategy. The Gelsenkirchen refinery, with a processing capacity of 12 million tons of crude oil per year, had already seen plans to reduce capacity by one-third due to a weaker demand outlook.

BP took a significant $1.34 billion impairment on the refinery in 2023. The company plans to finalize sales agreements by 2025, maintaining normal operations in the interim.

This move comes as global refiners face a downturn in profit margins, and BP's shares reacted positively, rising 2.5% following the announcement.