BP (BP/ LN) Q4 Trading Statement: "Reported upstream production in the fourth quarter is expected to be broadly flat compared to the prior quarter"; sees Q4 post-tax impairment in the range of USD 4-5bln

BP's Q4 trading statement indicates stagnant upstream production compared to Q3, signaling stability but highlighting pressures within its gas and low carbon sectors.

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BP (BP/ LN) Q4 Trading Statement: "Reported upstream production in the fourth quarter is expected to be broadly flat compared to the prior quarter"; sees Q4 post-tax impairment in the range of USD 4-5bln

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  • "Reported upstream production in the fourth quarter is expected to be broadly flat compared to the prior quarter, with production broadly flat in oil production & operations and lower in gas & low carbon energy"
  • "In the gas & low carbon energy segment, realizationsc, compared to the prior quarter, are expected to have an impact of USD 0.1-0.3bln, including changes in non-Henry Hub natural gas marker prices. The gas marketing and trading result is expected to be average."

FY Guidance:

  • "The underlying effective tax rate for the full year is expected to be around 42% compared to the previous guidance of around 40% primarily due to changes in the geographical mix of profits."
Context

The anticipated post-tax impairment of USD 4-5 billion, alongside a higher effective tax rate, reflects challenges in profitability that could impact investor sentiment and overall valuation, particularly in the context of fluctuating energy prices.

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