"Lean" plan exposed, Jiasiduo leads the way in lubricant business

According to informed sources, BP p.l.c. Sponsored ADR (BP.US) is considering selling its lubricant business Castrol. The activist investor Elliott Investment Management has already acquired nearly 5% of the company. Sources indicate that BP p.l.c. operates under the Castrol brand, and the transaction value could reach around $10 billion. The sale of this business is one of several options being considered by the company in order to restore investor confidence after years of poor performance. Sources also mention that this division is one of the potential assets for disposal identified by Elliott. Sources indicate that BP p.l.c. Sponsored ADR may announce this possible divestiture plan on the Capital Markets Day on February 26th. Discussions regarding the potential asset divestiture are ongoing, and no final decision has been made yet. According to the website of BP p.l.c. Sponsored ADR, the Castrol brand provides services to customers in over 150 countries in the automotive, marine, industrial, aerospace, and energy production fields. Recently, the brand has expanded into developing liquid cooling technology to help address overheating issues in data centers. Castrol has also become a globally recognized brand in the sports world through marketing partnerships with the NBA, WNBA, and motorsports. Last week, Elliott owned shares in BP p.l.c. Sponsored ADR worth about 3.7 billion ($4.7 billion) and has urged the company to significantly reduce costs and divest assets in order to strengthen its future as an independent entity. Elliott hopes to see BP reshape its business to be more like other oil giants such as Shell, cut spending in areas like renewable energy, and divest non-core assets on a large scale. RBC Capital analysts wrote in a research report to clients on February 9th that based on a profit before interest, taxes, depreciation, and amortization (EBITDA) of $1 billion, the lubricant business of BP p.l.c. Sponsored ADR could be valued at around $8-10 billion. The analysts suggest that the "more aggressive" approach of activist investors could push the company to sell or spin off businesses such as lubricants, U.S. shale, and fuel marketing. Under former CEO Bernard Looney, BP p.l.c. Sponsored ADR had previously bet on peak oil consumption but ultimately failed, now accepting a net zero emissions target. Since then, the company has struggled to come up with a clear turnaround strategy. In recent years, the stock price of BP p.l.c. Sponsored ADR has consistently lagged behind competitors like Shell and Exxon Mobil Corporation. Elliott has a long history of investing in energy companies and driving their transformation, including activities at NRG Energy Inc. and Canadian oil producer Suncor Energy Inc.