BP’s oil and gas production was up on the previous three months in its first quarter of 2024 though lower prices are having an impact, said the oil major.
Crude prices falling back will knock between US$0.3-US$0.6 billion off the profits total, with lower gas prices to lop off a further US$200-400 million.
Even so, gas marketing and trading results are expected “to be strong” following a good result in the fourth quarter of 2023, said the oil giant
Refining margins have also improved, which will give a $0.1-0.2 billion boost offset by a power outage at the Whiting refinery which, after a phased start-up, resumed normal operations on 15 March.
Oil trading is expected to bounce back following a weak result in the fourth quarter of 2023.
Net debt will be higher mainly reflecting "a working capital build plus phasing of capex and divestment and other proceeds as previously guided".
BP added that Brent averaged $83.16/bbl in the first quarter of 2024 compared to $84.34/bbl in the fourth quarter of 2023, while US Henry Hub gas averaged $2.25/mmBtu against $2.88/mmBtu in the previous three months.
Shares rose 0.9% to 515p.