We continued to improve our personal and process safety and delivered strong operations and marketing performance, contributing to record replacement cost profit before interest and tax
Our business model and strategy
The Downstream segment has global manufacturing and marketing operations. It is the product and service-led arm of BP, made up of three businesses:
- Fuels – includes reﬁneries, fuels marketing and convenience retail businesses, together with global oil supply and trading activities that make up our fuels value chains (FVCs). We sell reﬁned petroleum products including gasoline, diesel and aviation fuel.
- Lubricants – manufactures and markets lubricants and related products and services globally, adding value through brand, technology and relationships, such as collaboration with original equipment manufacturing partners.
- Petrochemicals – manufactures, sells and distributes products, that are produced mainly using proprietary BP technology, and are then used by others to make essential consumer products such as paint, plastic bottles and textiles. We also license our technologies to third parties.
We aim to run safe and reliable operations across all our businesses, supported by leading brands and technologies, to deliver high-quality products and services that meet our customers’ needs. Our strategy focuses on a quality portfolio that aims to lead the industry, as measured by net income per barrel, with improving returns and growing operating cash flow. Our ﬁve strategic priorities are:
- Safe and reliable operations – this remains our first priority and we continue to drive improvement in personal and process safety performance.
- Advantaged manufacturing – we continue to build a top-quartile reﬁning business by having a competitively advantaged portfolio underpinned by operational excellence that helps to reduce exposure to margin volatility. In petrochemicals we seek to sustainably improve earnings potential and make the business more resilient to a bottom of cycle environment through portfolio repositioning, improved operational performance and efficiency benefits.
- Fuels and lubricants marketing – we invest in higher-returning businesses with reliable cash flows and growth potential.
- Portfolio quality – we maintain our focus on quality by high-grading of assets combined with capital discipline.
- Simplification and efficiency – we are embedding a culture of simplification and efﬁciency to support performance improvement and make our businesses even more competitive.
Disciplined execution of our strategy is helping improve our underlying performance and create a more resilient business that is better able to withstand external environmental impacts. This is with the aim of ensuring Downstream remains a reliable source of cash flow for BP.