{"id":38711,"date":"2025-04-11T11:35:08","date_gmt":"2025-04-11T11:35:08","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/04\/11\/bp-shares-decline-following-weak-q1-gas-trading-forecast-and-rising-debt\/"},"modified":"2025-04-11T11:35:08","modified_gmt":"2025-04-11T11:35:08","slug":"bp-shares-decline-following-weak-q1-gas-trading-forecast-and-rising-debt","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/04\/11\/bp-shares-decline-following-weak-q1-gas-trading-forecast-and-rising-debt\/","title":{"rendered":"BP shares decline following weak Q1 gas trading forecast and rising debt"},"content":{"rendered":"
<\/div>\n

BP’s shares fell in early trading Thursday after the energy group announced it expects weak first-quarter gas marketing and trading earnings and a rise in net debt.<\/p>\n

The release<\/a> provides an initial look into BP’s quarterly results amidst increased scrutiny of its debt and expenditures, following activist investor Elliott Management’s recent acquisition of a stake<\/a> in the company.<\/p>\n

The first quarter is expected to end with a net debt increase of roughly $4 billion compared to the previous quarter, BP said. <\/p>\n

\n

This is driven primarily by a working capital build, which is largely expected to reverse, reflecting seasonal inventory effects, timing of payments including annual bonus payments and payments related to low carbon assets held for sale.<\/p>\n<\/blockquote>\n

BP’s shares fell by around 2.8% at the time of writing, compared to a 1.5% drop in a broader index of energy companies. <\/p>\n

The company did not provide additional information on its gas trading results, as energy companies rarely disclose details about their trading divisions.<\/p>\n

The first-quarter results for BP are expected to be released on April 29.<\/p>\n

BP CEO Murray Auchincloss had announced a new strategy in February, aiming to reduce the company\u2019s net debt from roughly $23 billion at the end of 2024 to between $14 billion and $18 billion by the end of 2027.<\/p>\n

Earnings from the oil and gas segment<\/h2>\n

Realisations in the oil production and operations segment are anticipated to remain generally unchanged from the previous quarter, BP said. <\/p>\n

This forecast incorporates the effects of price lags on BP\u2019s production in the Gulf of America and the United Arab Emirates.<\/p>\n

The company anticipates that stronger refining margins will boost first-quarter earnings by $100 million to $300 million, while oil trading results are projected to remain unchanged.<\/p>\n

BP has a $20 billion divestment program running through the end of 2027. <\/p>\n

The company expects to take in $3 billion from asset sales, mainly in the second half of 2025, and plans to spend about $15 billion in 2025. <\/p>\n

This spending amount is at the upper end of BP’s guided range through 2027.<\/p>\n

The second quarter will be the main focus for refinery maintenance.<\/p>\n

Additionally, realisations in the gas and low carbon energy segment are expected to remain generally unchanged from the previous quarter, factoring in shifts in non-Henry Hub natural gas marker prices.\u00a0<\/p>\n

The gas marketing and trading result is anticipated to be poor.<\/p>\n

Customer segment<\/h2>\n

In the customers segment, results are expected to be impacted by lower costs, and stronger midstream performance will be partly offset by seasonally lower volumes, BP said.<\/p>\n

However, fuel margins will remain sensitive to supply costs, and earnings will be impacted by the relative strength of the US dollar.<\/p>\n

Meanwhile, the anticipated effective tax rate for the first quarter is approximately 50%, due to the geographical distribution of profits.<\/p>\n

The post BP shares decline following weak Q1 gas trading forecast and rising debt<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

BP’s shares fell in early trading Thursday after the energy group announced it expects weak first-quarter gas marketing and trading earnings and a rise in net debt. The release provides an initial look into BP’s quarterly results amidst increased scrutiny of its debt and expenditures, following activist investor Elliott Management’s recent acquisition of a stake <\/p>\n","protected":false},"author":1,"featured_media":38712,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-38711","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/38711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=38711"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/38711\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/38712"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=38711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=38711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=38711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}