What exactly is the BP Castrol sale?

BP is selling 65% of Castrol to Stonepeak for US$6 billion, valuing Castrol at US$10.1 billion. BP will keep a 35% minority stake. In Australian terms, proceeds are about A$9.0 billion. The transaction advances BP’s US$20 billion divestment plan and tightens focus on hydrocarbons and trading.

How will BP use the cash from the BP Castrol sale?

BP plans to reduce debt. With debt-to-equity at about 1.28x and interest coverage near 3.8x, paying down borrowings should cut interest costs and improve flexibility. Management has also highlighted portfolio discipline, which could support dividends and buybacks once leverage steps down and cash flows stabilise.

Does the BP Castrol sale affect dividends or buybacks?

It supports them. BP’s dividend yield is around 5.7% (TTM). Lower leverage from the sale strengthens the balance sheet and can widen room for buybacks, subject to oil prices, working capital swings, and board approval. Investors should watch post-close guidance for explicit capital return targets.

What is the read-through for Castrol India and Australia?

Reuters reports Stonepeak and CPPIB are looking to buy Castrol India shares at a premium, which could affect governance and liquidity without major operating changes. In Australia, the sale is a sentiment and balance sheet story. Watch currency effects, leverage progress, and any changes to supply relationships and branding.

Global Market Insights

BP Stock Today: December 27 — $6B Castrol Sale Speeds Deleveraging

ByHuzaifa Zahoor December 27, 2025December 27, 2025

On 27 December, the BP Castrol sale moved centre stage as BP agreed to sell 65% of Castrol to Stonepeak for US$6 billion (about A$9.0 billion), valuing the unit at US$10.1 billion (about A$15.0 billion). The deal advances the BP $20B divestment plan and tightens focus on oil and gas. For Australians, Castrol is a familiar brand, and this shift could improve balance sheet strength and support dividends. We break down what the BP Castrol sale means, who benefits, and the near-term setup for investors in Australia.