Shares in BP (LON:BP) have been little changed in today’s session ahead of the group’s fourth-quarter results tomorrow. Analysts expect the British oil major to unveil a rise in profits, having benefitted from the recent recovery seen in oil prices.
As of 10:02 GMT, BP’s share price had given up 0.21 percent to 488.40p, outperforming the broader UK market, with the benchmark FTSE 100 index having fallen deep into the red and currently standing 1.06 percent lower at 7,364.74 points. The group’s shares have added about two percent to their value over the past year, as compared with an over four-percent advance in the Footsie.
BP to post rise in profits
BP is scheduled to update investors on its fourth-quarter performance tomorrow and The Times reports that the blue-chip energy major is expected to have earned $6 billion (£4.25 billion) last year compared with $2.6 billion in 2016. The company is expected to have benefitted from a rally in the oil price, with the price of a barrel of Brent crude having surged by 40 percent since July to $68.58 last week.
MarketWatch meanwhile notes that the oil major, which started up a record seven new projects last year and announced plans to restart share buybacks, is expected to use tomorrow’s results to underscore its confidence in the strategy that was laid out last February and paint an optimistic picture of its longer-term prospects beyond 2021.
Charges to weigh on results
BP, however, is set to take a one-off non-cash charge of around $1.5 billion to its fourth-quarter results due to US President Donald Trump’s tax reform. The company has further flagged a new, $1.7-billion charge in relation to the Deepwater Horizon disaster, adding to the group’s nearly $65-billion bill over the Gulf of Mexico oil spill in 2010.