BP Amoco to Boost Spending by 13%

BP Amoco, after completing $100 billion worth of takeovers in 19 months, said it plans to increase capital spending by 13% to $13.5 billion annually in the next three years to boost oil and natural gas output and raise profit. Although BP splurges on growth, the company is ahead of plan with cutting costs, which will save $4.7 billion this year and $5.8 billion next year, Chief Executive John Browne told investors in London. With the buyouts of Amoco Corp., Atlantic Richfield Co. and Burmah Castrol done, Browne must now increase profit while he boosts spending, analysts said. By slashing costs, profit can rise 10% a year, excluding any benefit from higher energy prices, Browne said. BP’s American depositary receipts closed up $1.19 at $57.31 on the NYSE.

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