BP reports lower Q4 production, flags higher full-year charges
By Benjamin Chiou
Date: Tuesday 14 Jan 2025
(Sharecast News) - Energy major BP said it now expects to report lower upstream production for the fourth quarter, while tax charges and foreign exchange losses for the full year will be greater than previously expected.
Upstream production in the final three months of 2024 was down on the third quarter, the company said on Tuesday, with output across oil, gas and low carbon energy all declining over the period.
Realisations in gas and low carbon energy are expected to have a $0.1bn-0.2bn favourable impact, including changes in non-Henry Hub natural gas marker prices. However, realisations in oil production and operations are expected to result in a $0.2bn-0.4bn dent on fourth-quarter results, which includes the impact of price lags on production in the Gulf of Mexico and the UAE.
In BP's customers and products division - which includes things like aviation fuel, petrol and EV-charging stations and the Castrol brand - the group reported seasonally lower volumes and fuel margins, as well as weaker realising refining margins in the range of $0.1bn-0.3bn.
For the full-year results, BP revealed that the underlying effective tax rate would be around 42% compared with previous guidance of 40% due to changes in the geographical mix of profits.
Meanwhile, it also expects to book an underlying annual charge for its other businesses and corporate segment of $0.6bn compared with a previous range of $0.3bn-0.4bn due to currency movements.
In other news, BP said it would be postponing a capital markets day scheduled for 11 February by two weeks to give its chief executive Murray Auchincloss time to recover from a planned medical procedure. However, the company will still release its annual results on that day as planned.
The stock was down 2% at 422.8p by 0812 GMT.
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