BP: British oil and gas giant to start year strong with boosted activity
The firm today said that oil, gas and lo-carbon production across its operations is expected to be higher for Q1 2024 compared to the end of last year.
UK oil and gas supermajor BP has issued a bullish trading update that signals likely higher trading volumes and production volumes across gas and oil than the end of 2023.
The firm today said that oil, gas and low-carbon production across its operations is expected to be higher for the first quarter 2024 compared to the end of last year, despite forecasting increases in just oil across the full 2024 year.
The group’s oil trading activities are also expected to be strong following a weak result in the fourth quarter 2023.
However the firm said that it expects to swallow a $200m-400m (£158-316m) decrease in realisations across gas and low carbon segments in its subsidiaries as a result of declines in non-Henry Hub gas marker prices.
The group expects an additional $200m (£158m) hit as a result of the devaluation of the Egyptian Pound.
The products segment of the business is expected to benefit in the tune of $100m-200m (£79m-158m) from realised refining margins, while the customers unit is likely to be impacted by significantly weaker fuel margins, seasonally lower volumes and the absence of “one-off positive effects” that the company said buoyed the division last quarter.
The group confirmed that another $1.2bn (£948m) of pre-tax funds would be paid for the Gulf of Mexico oil spill damages, of which $1.1bn (£869m) will come out in the second quarter of 2024.
Net debt is expected to increase in the first quarter, reflecting a working capital build as well as the phasing of capital expenditure and divestment.
BP is set to report its first quarter results on May 7th, the first first full period for Murray Auchincloss, the company’s recently-minted chief executive.
Auchincloss replaced former chief Bernard Looney on a permanent basis in January, having served as interim head of the business since Looney’s unceremonious departure in September last year.
