• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Investing

BP shares decline following weak Q1 gas trading forecast and rising debt

by April 11, 2025
by April 11, 2025
BP

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 in the company.

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

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.

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. 

The company did not provide additional information on its gas trading results, as energy companies rarely disclose details about their trading divisions.

The first-quarter results for BP are expected to be released on April 29.

BP CEO Murray Auchincloss had announced a new strategy in February, aiming to reduce the company’s net debt from roughly $23 billion at the end of 2024 to between $14 billion and $18 billion by the end of 2027.

Earnings from the oil and gas segment

Realisations in the oil production and operations segment are anticipated to remain generally unchanged from the previous quarter, BP said. 

This forecast incorporates the effects of price lags on BP’s production in the Gulf of America and the United Arab Emirates.

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.

BP has a $20 billion divestment program running through the end of 2027. 

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. 

This spending amount is at the upper end of BP’s guided range through 2027.

The second quarter will be the main focus for refinery maintenance.

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. 

The gas marketing and trading result is anticipated to be poor.

Customer segment

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.

However, fuel margins will remain sensitive to supply costs, and earnings will be impacted by the relative strength of the US dollar.

Meanwhile, the anticipated effective tax rate for the first quarter is approximately 50%, due to the geographical distribution of profits.

The post BP shares decline following weak Q1 gas trading forecast and rising debt appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
JD.com, Freshippo step up to support struggling Chinese exporters tap domestic market amid US-China tariff war
next post
Asia markets on Friday: Hang Seng, Nifty end in green, Nikkei dips sharply

Related Posts

GMS stock jumps 29% on takeover interest from...

June 20, 2025

Japan’s rice price surge: what’s driving it and...

June 20, 2025

Foxconn and Nvidia to deploy humanoid robots in...

June 20, 2025

US stocks climb higher at open: Dow jones...

June 20, 2025

Apollo backs £4.5bn loan for delayed Hinkley Point...

June 20, 2025

Audi weighs $4.6 billion US plant amid tariff...

June 20, 2025

Tesla stock gains ahead of robotaxi launch: analyst...

June 20, 2025

BofA raises STOXX 600 target amid resilient global...

June 20, 2025

XRP price stuck under $3: can it finally...

June 20, 2025

Elon Musk confirms Tesla Robotaxi pilot launching in...

June 20, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • The Techno-Industrial Policy Playbook Isn’t Conservative — It’s Central Planning

    June 23, 2025
  • Dollar’s Decline Meets Rising Dedollarization: The Threat Comes from Within

    June 23, 2025
  • OKX eyes US IPO as crypto stock rally fuels listing ambitions

    June 23, 2025
  • Strong fundamentals, shaky chart: Is BAE Systems share price at risk?

    June 23, 2025
  • Rolls-Royce share price has stalled: will the surge resume?

    June 23, 2025
  • Why closing the Strait of Hormuz is a double-edged sword for Iran?

    June 23, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,579)
  • Editor's Pick (164)
  • Investing (185)
  • Stock (1,025)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Long ACN: bullish reversal from ascending triangle...

April 29, 2025

European stocks register best day in years:...

April 11, 2025

Trump’s WLFI $336M crypto holdings spark concerns...

March 6, 2025