Thread regarding BP PLC layoffs

@a7 No that all of Convenience made over $1.4 Billion with majority being AM/PM/Arco in the West...and yes, they kept not very talented or knowledgable people in the Divisions and sent most jobs to India to people that had no clue what they are doing and never worked in business before... and are working until 2am. Not great model. Its insanity..

There is 1 guy from TA they kept that seems pretty good. Its the left over BP people that are so so...

@be read the post below, and stop believin'

Ahhh the albatross known as TA. 200+ of the most antiquated storefronts you could possibly find. From day one, anyone with eyes could see it wouldn’t end pretty and honestly it speaks to bp’s incompetence as a whole.

First, leadership decided they would fire 90% of the people with institutional knowledge of TA, leading the 10% that remained to withhold knowledge to remain valuable. MOC? Ha! Broken systems, lack of process, you name it. This doomed the acquisition from the start.

Then, they thought it would be a good idea to cross-pollinate. The leaders of the failing business they acquired were now making critical decisions for the other brands. And vice versa— folks from the other brands were steering the ship for a business they didn’t have a clue about. Some flat out refused the work. This of course all in the midst of “transformation” with people exiting the business, lack of strategic direction etc. and folks having one priority— saving their jobs.

And now, bp’s grand idea is to let “AI”, a large group of Indians, and the remaining US based group solve the issues of a national network that is fragmented in name, culture, customer, process, systems etc. It’s all set up for failure.

@a7 here is the rundown of what was said.

BP's Network

• Network includes: BP, Amoco, Thornton's, and TA locations.
• Locations:
  • Green (East of the Mississippi): BP and Amoco.
  • Red (Middle): Thornton's.
  • Purple (West Coast): AMPMs.
  • Blue/Slate Gray: TA (Travel Centers of America) along highways.
• Mobility and convenience businesses generated $1.4 billion EBITDA and almost $900 million of free cash flow in 2024.

Convenience Store Ranking

• BP has grown from the number eight convenience chain to number five.
• Number three in fuel in the markets they serve.
• Number three travel center operator.
• Mobility and convenience, excluding TA, are significantly above plan.

TA (TravelCenters of America) - Positives

• Good network of sites with great people and locations.
• EBITDA is up 15% this year.
• Free cash flow improvement over last year of $400 million plus.
• Diesel volume is up 6-7% despite a freight recession.
• Cost efficiencies: $100 million taken out last year, another $65 million this year.
• Quick Serve Restaurant (QSR) segment is up 9%.

TA (TravelCenters of America) - Challenges

• Diesel margin compression due to market conditions (Ukraine war impact).
  • "We were selling lower on Opus and we were paying more on Argus."
• Freight recession: Extended into its third year.
  • Tied to housing activity, manufacturing, imports, and retail buying.
• Business improvement program in place to extract more value from the network.
• Network requires investment due to previous lack of investment.
• High lease costs and short lease terms hinder external investment in restaurants.

TA (TravelCenters of America) - Future Outlook

• Diesel is expected to be more resilient than gasoline through 2040.
• Anticipated growth in freight movement will drive diesel demand.
• BP is in a good market position as the number three player on the highway.
• The long-term factors that made TA attractive still exist.

It was a truly inspiring session. I am more motivated than ever before and bP clearly has a bright future, especially with these folks helping run the show.

@a7 and how much will they have to spend to modernize these 8300+ "tired" assets...thats why

Wasn't the presentation saying TA made over a billion in 2024 EBITDA? That's more than what was projected in the 2023 acquisition press release. How is that cr*p?