FX.co ★ BP Now Sees Q3 Upstream Production To Be Broadly Flat Sequentially

BP Plc, the British energy conglomerate, announced on Friday that it anticipates its Upstream production for the third quarter to remain relatively unchanged compared to the second quarter.

The stability in production is expected across both the oil production and operations segment and the gas and low carbon energy segment.

Within the gas and low carbon energy division, the company forecasts a favorable sequential impact on realizations of approximately $0.1 billion. This figure considers changes in pricing for non-Henry Hub natural gas markers, while the performance of gas marketing and trading is anticipated to remain average.

Conversely, in the oil production and operations segment, BP forecasts realizations to suffer a sequential unfavorable impact between $0.1 billion and $0.3 billion, due to price lags affecting production in the Gulf of Mexico and the UAE.

Additionally, BP predicts an unfavorable impact ranging from $0.2 billion to $0.3 billion compared to the previous quarter due to heightened exploration write-offs.

In the customers and products division, the results are projected to reflect nearly flat fuel margins, with seasonal volume increases somewhat mitigated by costs. Meanwhile, in the products segment, weaker realized refining margins, estimated between $0.4 billion and $0.6 billion, along with a feeble oil trading result, are anticipated to affect performance.

BP also anticipates a rise in net debt by the quarter's end. This increase is largely attributed to weaker realized refining margins and the postponement of approximately $1 billion in divestment proceeds to the fourth quarter.

The company's comprehensive results for the third quarter are scheduled for release on October 29.