BP sees no gain from green energy

By Tom Bergin

LONDON (Reuters) - BP's (BP.L) Chief Executive said the oil giant's shares have received little, if any, uplift from its investments in renewable energy but told investors the company's strong base of hydrocarbons would underpin growth for years to come.

In his first strategy presentation as CEO, Tony Hayward said he was making "significant progress" in restructuring the underperforming oil major and adding new reserves.

He added that even without new oil and gas finds, BP's asset base could support production of 4 million barrels per day to 2020.

However, Europe's second-largest fully publicly traded oil company by market value said it was taking a new approach to its Alternative Energy, which invests in wind and solar power and fuels made from crops, and hinted at a part sale.

Hayward's predecessor, John Browne, saw renewable energy as core to BP's operations and image -- and highlighted this in the "Beyond Petroleum" branding BP spent tens of millions of dollars advertising.

The London-based oil major now sees its alternative energy unit as simply a portfolio of investments and division head, Vivienne Cox, said its businesses would now face deadlines for delivering profits.

A spokesman said the unit or its constituents could be floated or parts sold. Nothing is on the cards currently, but this may change in the coming year, Hayward said.

"Taking stock market valuations for similar companies, we estimate it is already worth between $5 billion (2.5 billion pounds) and $7 billion," Hayward told the investors meeting in London.