BP Earnings Fell, Debt Climbed As Coronavirus Hit Oil Demand -- Earnings Review
April 28 2020 - 9:38AM
Dow Jones News
By Giulia Petroni
BP PLC reported first-quarter results on Tuesday. Here's what we
watched:
UNDERLYING REPLACEMENT COST PROFIT: The London-based energy
company's underlying replacement cost profit--a figure that is
similar to the net-profit figure U.S. oil companies use, but strips
out one-off items--fell to $800 million in the quarter from $2.4
billion in the year-earlier period. A company-compiled consensus of
22 brokers had forecast the figure at $710 million.
UPSTREAM: Excluding the Rosneft segment, production was 2.58
million barrels of oil equivalent a day, down 2.9% on year. The
company said it expects production to be lower in the second
quarter of the year partly due to uncertainties related to the
Organization of Petroleum Exporting Countries' restrictions and the
coronavirus hit to oil demand.
WHAT WE WATCHED:
- DOWNSTREAM OUTLOOK: BP said it expects lower refining margins
and reduced utilization in the second quarter mainly due to product
demand declines.
-NET DEBT: The company's net debt as of March 31 was $51.4
billion from $45.1 billion a year earlier. Gearing--the ratio of
net debt to the total of net debt and equity--climbed to 36.2% from
30.4%. The company said it expects gearing to remain above the 20%
to 30% target range in 2021.
-DIVIDEND: The company announced a quarterly dividend of 10.50
cents, up 2.4% from 10.25 cents in the first quarter of 2019.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
April 28, 2020 09:23 ET (13:23 GMT)
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