BP EXPECTS to report a strong performance from its trading business for the first quarter, with a notable improvement in results from buying and selling oil.
The boost in trading came alongside rising oil and gas production and improved margins in the company’s refining business, according to a trading update published on Tuesday (Apr 9).
“BP’s first trading update suggests limited downside to consensus numbers” for first-quarter earnings, with strong gas trading results providing an uplift, Jefferies analyst Giacomo Romeo said in a note.
BP’s gas marketing and trading business maintained the strong performance seen in the prior period, while oil showed improvement from a weak fourth quarter, according to the company.
The London-based energy giant ended 2023 on a high note, after being roiled earlier in the year by the surprise resignation of chief executive officer Bernard Looney. The company posted fourth-quarter profit that exceeded expectations and accelerated share buybacks, sending its shares soaring.
In the first quarter, BP expects its net debt to have risen, reflecting a build in working capital and the timing of capital expenditure and divestment proceeds, the company said.
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The trading update also suggests that the impact from “operational upsets” such as the Whiting refinery halt from February 1 to March 15 was lower than feared, Romeo said.
BP is due to report first-quarter results on May 7. BLOOMBERG
