BP Expects 1Q Results to be Hurt by Virus, Weak Demand; Expects $1 Billion Impairment

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 [e-mail]

(END) Dow Jones Newswires

April 01, 2020 04:44 ET (08:44 GMT)

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