BP Amoco promises to deliver early savings
BP Amoco has targeted faster delivery of the major synergies it promised when the merger of the two companies was announced last year. The company now aims to achieve pre-tax savings of an annual rate of $2bn within the next 12 months – almost a year ahead of the original target date of the end of 2000.
At the beginning of February it emerged that the company had escaped paying more than $800m in duty on the merger thanks to a loophole in the UK tax laws.
Combined earnings of the merged group for 1998 was $4.5bn, a fall of 34 per cent compared to 1997. Despite a $6 drop in the crude oil price and the effects of a global recession, the company delivered a post-tax improvement of $500m in self-help in 1998 and expected to achieve a further $400m post tax this year.