8th May 2023 15:11
(Alliance News) - BP PLC'S venture division is exploring a sale of Lytt and Onyx Insight, which could yield tens of millions of pounds for the company, Sky News reported on Friday.
Launchpad, a division of the London-based oil major, has begun contacting possible buyers of Lytt and Onyx Insight in recent weeks.
Lytt turns data into insights, providing services such as detecting blockages in oil wells more efficiently. Sky News noted the technology has been likened to the music identification app Shazam.
Sources said BP was also looking to sell Onyx Insight, which serves the renewable energy sector. It has been owned by the group since 2017.
https://news.sky.com/story/oil-giant-bp-hoists-for-sale-sign-over-venture-arm-companies-12873523
The news comes days after BP said it began 2023 strongly, swinging to a profit in the first quarter as revenue ticked up and impairments were significantly reduced.
In response, the London-based oil major declared a higher dividend and announced a USD1.75 billion share buyback.
Underlying replacement cost pretax profit was USD13.23 billion in the first quarter, swinging from a loss of USD20.40 billion. Statutory pretax profit was USD12.63 billion, swinging from USD16.90 billion loss.
This was in line with total revenue and other income rising by 11% to USD56.95 billion from USD51.22 billion, while net impairment and losses on sale of businesses and fixed assets fell away to USD88 million from USD26.03 billion.
BP has previously said that Launchpad "will play an important role in bp's ambition to become a net zero company by 2050 or sooner, and to help the world get to net zero".
It declined to comment on the disposals, according to Sky News.
By Greg Rosenvinge, Alliance News reporter
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