BP’s first quarter revenue increased by $5.3bn to $52.3bn with most of the growth coming from the customers and products segment.
Underlying operating profit was up 40% to $6.3bn ($5.9bn expected) also driven by customers & products which benefitted from an exceptional oil trading result. Average oil & gas prices were down reflecting a time lag between the market and the price BP earns for its output.
Despite a deterioration in cash generation, free cash outflow nearly halved to $0.4bn due to a fall in capital expenditure. Net debt has risen by $3.1bn to $25.3bn since the year end.
The outlook remains broadly in line with previous guidance, but BP notes the full impact of disruption in the Middle East is yet to be determined.
BP declared a dividend of 8.32c per share. Share buybacks remain on hold.
The shares were up 3.0% in early trading.
Our view
HL view to follow.
BP key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.