BP Expects 1Q Results to be Hurt by Virus, Weak Demand; Expects $1 Billion Impairment
01 April 2020 - 10:59AM
Dow Jones News
By Matteo Castia
Shares in BP PLC fell Wednesday after the company said it
expects results in the first quarter of this year to be hit by the
current weak demand and low commodity pricing, and that it
estimates a $1 billion noncash impairment charge for the
period.
The British oil-and-gas group said it anticipates a reduced
first-quarter upstream production compared with the previous
quarter, in the range of 2.55 million to 2.6 million barrels of oil
equivalent a day.
BP said it also expects a "significant and growing decline in
demand for fuels, jet fuel and lubricants" in the first quarter due
to the restrictions imposed in a number of countries to contain the
spread of coronavirus.
The company also said its $15 billion divestment program remains
on track toward its completion in mid-2021, but that the receipt of
the $10 billion of divestment proceeds by the end of this year
might be revised as transactions complete, given the volatility of
the current trading environment.
Shares at 0820 GMT were down 12.5 pence, or 3.7%, at 331.5
pence.
Write to Matteo Castia at matteo.castia@dowjones.com
(END) Dow Jones Newswires
April 01, 2020 04:44 ET (08:44 GMT)
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