Consensus was beaten on the back of the higher oil price and “an exceptional gas marketing and trading performance”. The company is starting a first tranche of a $500m share buy-back, as it reached its net debt target ($35bn). While positive, the buy-back could be closer to $1bn, taking the capital allocation framework (60% of surplus cash flow, $1.7bn in Q1). Payments in Q2 seem to be the reason, as management expects a cash flow deficit in Q2.
27 Apr 2021
Q1: $500m buy-back to start with
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Q1: $500m buy-back to start with
BP p.l.c. (BP:LON) | 526 13.2 0.5% | Mkt Cap: 88,495m
- Published:
27 Apr 2021 -
Author:
Kevin VO -
Pages:
3
Consensus was beaten on the back of the higher oil price and “an exceptional gas marketing and trading performance”. The company is starting a first tranche of a $500m share buy-back, as it reached its net debt target ($35bn). While positive, the buy-back could be closer to $1bn, taking the capital allocation framework (60% of surplus cash flow, $1.7bn in Q1). Payments in Q2 seem to be the reason, as management expects a cash flow deficit in Q2.