Shares in BP (LON:BP) have climbed higher in London this morning, ahead of the oil major’s third-quarter results tomorrow. The FTSE 100 group is expected to reveal a rise in profits, having benefitted from a rebound in oil prices.
As of 09:38 GMT, BP’s share price had added 0.99 percent to 533.32p, marginally underperforming the broader market rally which has seen the benchmark FTSE 100 index surge 1.14 percent to 7,018.39 points. The group’s shares have added more than six percent to their value over the past year, as compared with about a 6.7-percent dip in the Footsie.
BP to post Q3 results
BP is scheduled to update investors on its third-quarter performance tomorrow and City A.M. reports that according to S&P Capital IQ, the oil major is expected to reveal a jump in profits from £2.82 billion to an estimated £2.9 billion.
“A significant improvement in profitability should be expected,” said Graham Spooner, investment research analyst at The Share Centre, commenting on BP, as quoted by City A.M., adding that “investors should expect production to rise though as new production facilities have come on-line while we will also see the inclusion of production from the acquisition of shale assets from BHP”.
Earlier this year, the FTSE 100 group inked a deal to snap up BHP Billiton’s (LON:BLT) shale oil and gas assets in the US for $10.5 billion.
Analyst ratings update
UBS reaffirmed BP as a ‘buy’ on Friday, without specifying a price target on the shares. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 633.50p.
BP reports tomorrow, while blue-chip peer Royal Dutch Shell (LON:RDSA) is due to follow on Thursday.