BP is expected to be the last successor of the increase in oil prices, and analysts expect first-quarter earnings to show a healthy year-on-year rise. The oil giant’s year-round results, published earlier this year, showed that the company was already in a solid position, with earnings of $6.2 Billion.
Boss Bob Dudley called 2017 as one of the strongest years in BP’s recent history, as it recovered from the 2010 Deepwater Horizon disaster by recovering $343 Million in investor stock.
First-quarter earnings, which will come out this week, are expected to reflect not only the recent rise in oil prices to $75 per barrel, which also boosted Shell’s profits by 67% to $ 5.9 Billion but also the strength of BP’s upstream and downstream business.
BP recently opened seven new oil and gas fields that helped boost its oil production levels by 12%. CMC Markets said that the six projects BP has in its portfolio in Egypt, North Sea, and Azerbaijan should further improve its profitability.
The announcement of results coincides with the appointment of a new president, Helge Lund, last week. Lund was the brainchild of BG Group’s sale of $70 Billion to Royal Dutch Shell and will replace incumbent chairman Carl-Henric Svanberg in the first month of 2019. Lund will take the position at BP as a non-executive director from September this year.
However, analysts and investors will be watching to see if there will be other costs related to the Deepwater oil spill, as well as whether BP can capitalize on the benefits of Donald Trump’s tax cuts.
Another point of friction is the company’s ties with Russia, which left it exposed after the poisoning of Russian spy Sergei Skripal and his daughter Yulia in March. BP retains just 20% of Russia’s Neil Wilson and Rosneft, a senior market analyst at ETX Capital, said Russia could “complicate BP’s life if it desires so.” CMC Markets said BP’s total debt still remains high at $37.3 Billion and needs to come down.
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