BP PLC (LSE:BP.) recently said that third-quarter production would be broadly flat compared to the previous three months, so tomorrow's update will be about the impact of the recent drop in crude prices.
Net income is expected to be US$2.3 billion, predicts US broker Jefferies, down 30% from the prior year, while cash flow is also projected to fall to US$6.3 billion.
Analysts highlight higher maintenance costs and lower production in key regions as significant factors behind the weaker performance.
BP’s long-term strategy will also be under scrutiny amid reports that it may reconsider its target to cut oil and gas production by 2030.
Panmure Liberum is sceptical that this will happen. “We remain unconvinced that the incumbent board have the courage to change direction and revitalise the strategy, as the majority of them were all lieutenants to Bernard Looney and had bought into his (value destructive) vision.”
Looking at the broader market, oil prices are expected to remain volatile, with forecasts for Brent crude at $70 per barrel in 2025, down $10 from earlier projections.
Consensus forecasts are for third-quarter earnings of US$2.05 billion, down 38%.