BP share price subdued ahead of first-quarter results

on Apr 29, 2019
Updated: Mar 11, 2020

Shares in BP (LON:BP) have fallen into the red this Monday ahead of the blue-chip oil major’s first-quarter update due out tomorrow. Proactive Investors reports that Deutsche Bank expects a small drop in the company’s profit during the first three months of the year.

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As of 14:50 BST, BP’s share price had given up 0.99 percent to 550.60p, underperforming the broader London market, with the blue-chip FTSE 100 index having climbed 0.25 percent higher to stand at 7,446.80p. The oil major’s shares have added more than two percent to their value over the past year, as compared with about a 0.8-percent fall in the Footsie.

BP Q1 results preview

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BP is scheduled to update investors on its first-quarter performance tomorrow and Proactive Investors reports that Deutsche Bank expects the oil major to report a one-percent decline in replacement cost pre-tax profit to $4.178 billion. The update will come after the FTSE 100 group more than doubled its profit for 2018 as it benefitted from stronger crude prices and a rise in oil and gas output following the acquisition of BHP’s (LON:BHP) US shale assets.

Aaran Fronda, financial writer at IG, meanwhile commented in a note last week that investors will be keen for an update on the oil major’s growth strategy for the current year, with the company likely to offer further insight in how it plans to grow its green energy footprint.

The results will come after RBC recently took BP off its ‘top picks’ list, while noting that the group’s investment case over the medium term remained ‘compelling’.

Analyst ratings update

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Deutsche Bank reaffirmed the oil major as a ‘buy’ last week, with a target on the BP share price of 615p. According to MarketBeat, the blue-chip group currently boasts a consensus ‘buy’ rating and an average valuation of 651.47p.

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