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BP appoints new finance chief as Looney prepares to take over

January 23/2020

MOSCOW (MRC) -- BPs finance chief Brian Gilvary is to step down in June after eight years in the role and will be replaced by a close ally of Bernard Looney who takes over as chief executive next month, reported Reuters.

Gilvary has been credited with overseeing BPs financial recovery following the 2010 deadly Gulf of Mexico oil spill which has cost the company more than USD65 billion in fines, indemnities and clean up costs.

The London-based company saw its profits recover sharply in recent years, allowing it to remove the scrip dividend last year, an austerity measure on shareholder payouts.

However, in October, Gilvary appeared to backtrack on a previous hint that the company would boost its dividend payouts, angering investors.

His departure comes earlier than anticipated and as Looney, who will replace Bob Dudley as chief executive of BP after a decade, faces the tricky task of navigating the energy major through a rising tide of environmentalism and the move to a low-carbon economy.

"Gilvarys departure may be associated with a more significant change in the companys strategy including its financial strategy as the running of BP moves to a new top team," stockbroker Panmure Gordon said in a note.

It is also likely to be associated with the problematic guidance over dividend, Panmure Gordon said.

Gilvary, an avid triathlete who joined BP in 1986, will step down from the board on June 30. He is a non-executive director at Air Liquide (AIRP.PA), the Royal Navy Board and the Francis Crick Institute.

In his current role Auchincloss worked with Looney, who until being appointed CEO was head of BPs oil and gas production division, known as upstream. Auchincloss oversaw a broad cost-cutting drive across the division in the wake of the 2014 oil price crash.

"I have worked side-by-side with Murray for many years and have the utmost confidence in his ability to step into this critical role," Looney said in a statement.

As MRC informed previously, in September 2019, six world's major petrochemical companies in Flanders, Belgium, North Rhine-Westphalia, Germany, and the Netherlands (Trilateral Region) announced the creation of a consortium to jointly investigate how naphtha or gas steam crackers could be operated using renewable electricity instead of fossil fuels. The Cracker of the Future consortium, which includes BASF, Borealis, BP, LyondellBasell, SABIC and Total, aims to produce base chemicals while also significantly reducing carbon emissions. The companies had agreed to invest in R&D and knowledge sharing as they assess the possibility of transitioning their base chemical production to renewable electricity.

Ethylene and propylene are feedstocks for producing PE and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
Author:Margaret Volkova
Tags:Europe, PP, PE, crude and gaz condensate, homopolymer PP, propylene, ethylene, petrochemistry, BASF, Borealis, BP Plc, LyondellBasell, Total Petrochemicals, Russia.
Category:General News
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