BP PLC (LSE:BP.) is set to report another quarter of strong surplus cash flow, that’s the view of analysts at Jefferies.
The broker forecasts some US$5.1bn of earnings for the quarter, boosted by some US$1.2bn of asset disposals and US$1.5bn of working capital inflows.
“This should theoretically allow buybacks to grow above the current run rate US$2.75bn but we think BP will leave the buyback flat in order to create headroom ahead of planned outflows in the coming quarters (payments of US$1.2bn for Macondo in 2Q and US$1.3bn for the TA acquisition in 3Q),” Jefferies analyst Owen Bennett said.
The Jefferies note comes ahead of BP’s quarterly results on Tuesday 2 May.