By Christian Moess Laursen
BP expects a boost to first-quarter profit from higher oil, gas and low-carbon energy production.
The British energy major on Tuesday backed its guidance of higher upstream production--the extraction of raw crude oil and natural gas--in the first quarter, with higher output in oil production and operations and slightly higher production of gas and low-carbon energy compared with the previous quarter.
In the fourth quarter, BP's oil production was 1.42 million of oil-equivalent barrels a day, while it produced 899,000 BOE a day of gas and low carbon energy.
Lower natural-gas prices will likely hit both its gas and low-carbon energy segment as well as its oil production and operations segment, BP said.
Together with the devaluation of the Egyptian pound, the company expects a hit of $400 million to $600 million on profit from the gas and low-carbon energy division, while the price lags on production in the Gulf of Mexico and the United Arab Emirates are expected to drive a $300 million-$600 million dent to profit from oil production and operations.
However, its gas marketing and trading result is expected to be strong, the company added.
In the first quarter of 2023, the FTSE 100-listed energy group reported gas and low-carbon energy production of 969,000 BOE a day and oil production of 1.36 million BOE a day.
BP also said its net debt is expected to increase in the first quarter, mainly reflecting a working-capital build plus phasing of capital expenditure and divestment and other proceeds, as previously guided.
On Friday, BP's closest rival Shell lifted its expectations to first-quarter production of integrated gas and liquefied natural gas.
Write to Christian Moess Laursen at christian.moess@wsj.com
(END) Dow Jones Newswires
04-09-24 0311ET
