Shares in BP (LON:BP) have slipped into the red in today’s session, ahead of the group’s second-quarter update tomorrow which is expected to show a 75-percent rise in profits. The results will come after the blue-chip oil major agreed a deal to buy BHP Billiton’s (LON:BLT) shale oil and gas assets in the US for $10.5 billion and said that it will increase its dividend for the first time since the third quarter of 2014.
As of 09:34 BST, BP’s share price had given up 0.33 percent to 565.40p. The decline is largely in line with losses in the broader London market, with the benchmark FTSE 100 index currently standing 0.23 percent in the red at 7,683.45 points.
BP to post Q2 results
BP is scheduled to update investors on its second-quarter performance tomorrow and City A.M. reports that the company is expected to post $2.7 billion (£2.06 billion). The newswire notes that consensus estimates collated by S&P Global Market Intelligence put this at an increase of 74.6 percent year-on-year, indicating that the blue-chip oil major remains on track after reporting a similar increase in profits in its first quarter in May.
The results will come with the FTSE 100 group continuing to benefit from the ongoing recovery of crude prices which hit $80 a barrel earlier this year.
Analyst ratings update
UBS reaffirmed BP as a ‘buy’ on Friday, with a price target of 610p on the shares, while JPMorgan Chase & Co, which also sees the oil major as a ‘buy,’ set a valuation of 650p on the stock. Royal Bank of Canada meanwhile continues to see the group as a ‘top pick,’ valuing the shares at 675p. According to MarketBeat, BP currently has a consensus ‘buy’ rating and an average price target of 608.50p.