For 2024 BP Expects Both Reported And Underlying Upstream Production To Be Slightly Higher Compared With 2023; Sees Capital Expenditure Of Around $16B, Weighted To The First Half
Portfolio Pulse from Benzinga Newsdesk
BP anticipates a slight increase in both reported and underlying upstream production for 2024 compared to 2023, with higher oil production and lower gas & low carbon energy production. The company expects capital expenditure to be around $16 billion, mainly in the first half, and divestment proceeds of $2-3 billion, mainly in the second half. Growth is expected in the convenience sector, including contributions from TravelCenters of America, and in Castrol and bp pulse due to volume growth and higher energy sold. However, industry refining margins are expected to be lower, with refinery activity impacting financial performance similarly to 2023. The annual charge for other businesses & corporate is projected at $1.0 billion, and depreciation, depletion, and amortization slightly higher than 2023. The underlying ETR for 2024 is expected to be around 40%, sensitive to price volatility. Gulf of Mexico oil spill payments are anticipated to be $1.2 billion pre-tax.
February 06, 2024 | 7:54 am
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BP expects a slight increase in production for 2024, with capital expenditure of $16 billion and divestment proceeds of $2-3 billion. Growth in convenience and Castrol sectors, but lower refining margins anticipated. Other charges projected at $1B, with Gulf oil spill payments at $1.2B pre-tax.
The anticipated slight increase in production and strategic capital expenditure indicate a positive outlook for BP's operational efficiency and growth potential. The divestment proceeds further strengthen the financial flexibility. However, the expected lower refining margins and the significant charge for Gulf oil spill payments could offset some of the positive impacts. Overall, the strategic initiatives and expected growth in key sectors suggest a positive short-term impact on BP's stock.
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