BP Plc, a leading British energy corporation, announced on Tuesday that it anticipates its upstream production to increase sequentially in the first quarter. Forecasts for fiscal 2024 suggest that both reported and underlying upstream production is projected to slightly exceed that of 2023.
Throughout the year, production in Oil Production & Operations is expected to rise, whereas Gas & Low Carbon Energy Production is likely to decline. The results of the first-quarter trading statement reinforce these predictions, with higher performance foreseen in oil production & operations, and marginally higher output in gas & low carbon energy.
The realizations in the Gas & Low Carbon Energy sector, compared to the previous quarter, are predicted to negatively impact the range of $0.2 billion to $0.4 billion. Nevertheless, the gas marketing and trading result is predicted to be strong, succeeding the robust result from the fourth quarter of 2023. Conversely, realizations in the Oil Production & Operations sector are expected to negatively affect the range of $0.3 to $0.6 billion, when compared to the previous quarter.
Moreover, Brent crude averaged $83.16 per barrel in the first quarter, dropping from $84.34 per barrel in the final quarter of 2023. As a result, BP expects a rise in net debt for the first quarter, primarily due to an increase in working capital, the timing of capital expenditure, and divestment and other proceeds as previously indicated.
BP is set to release its first-quarter results on May 7.
