BP lowers outlook for gas production in first quarter and flags ‘weak’ trading
BP has lowered its outlook for gas production in the first quarter of 2025 while the energy giant said debts are set to jump.
The London-listed company said production will be lower in gas and low-carbon energy for the first three months of the financial year, compared with the previous quarter.
The gas marketing and trading result is expected to be “weak”, BP told investors in an update on Friday.
It nevertheless expects oil production and operations to be slightly higher than the quarter before.
Net debt at the end of the quarter is expected to be around four billion US dollars (£3.1 billion) higher, compared with the previous quarter, the company revealed.
This is partly due to it paying out annual bonuses and other seasonal payments.
BP’s chief executive Murray Auchincloss was handed a £5.4 million pay cheque in 2024 including bonuses and shares.
This was nonetheless about a third lower than the year before, with his bonus cut by more than £1.1 million.
BP also said fuel margins would be sensitive to movements in the cost of supply while earnings could be impacted by the strength of the US dollar.
It comes as tariff plans in the US have seen significant turmoil in global financial markets, including sharp drops in the value of the dollar.
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BP is among the stocks listed on the FTSE 100 to suffer steep falls in its share price in the days since Donald Trump unveiled his tariff plans last Wednesday.
The business last month bowed to pressure from shareholders by vowing to accelerate investment in oil and gas while slashing renewable spending by nearly three-quarters.
The company had come under increasing pressure from some investors over its share price, which has lagged behind rival Shell.
It is still aiming to hit net-zero carbon emissions by 2050.