1218 GMT - BP's new strategy is more shareholder-friendly and should enable the company to be more competitive in the long run, Berenberg analysts write. However, over the near term, organic free cash flow is likely to continue to lag peers and consequentially buybacks are likely to be paid for from the proceeds of divestments, the analysts write. These divestments will chip away at underlying cash flow, they add. Growing free cash flow will require lower capital expenditure, an improved downstream division and cost reductions, they write. BP's capex guidance is clear but a downstream recovery and cost reductions are hard to forecast given the partial reliance on a recovery in downstream margins, they write. Shares trade up 0.5% at 432.95 pence. (adam.whittaker@wsj.com)

(END) Dow Jones Newswires

February 27, 2025 07:18 ET (12:18 GMT)

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