BP Plc to Reach Net Debt Target in Q1 2021; 2 Energy Stocks in Focus

Source:Cardaf, Shutterstock

Summary

  • BP Plc on Tuesday said it expected to reach its net debt target of $35 bn in the Q1 of this year.
  • The company received about $4.7 billion in disposal proceeds in the first quarter.
  • BP Plc aims to sell $25 billion worth of assets by 2025 as part of plan to invest in alternative energy.

BP Plc’s (LON:BP) shares on 6 April were up 3.83 per cent at 13:06 GMT+1 after the company announced that it expects to reach its net debt target of $35 billion in the Q1 of this year. The company said it is possible due to sooner than expected delivery of disposal proceeds. Robust business performance in the first quarter also contributed to meeting its debt target.

In the first quarter, the company received about $4.7 billion in disposal proceeds. For 2021, it would be in the top end of the already announced $4‑6 billion range. This year, BP shares have gained 16 per cent, after it lost 45 per cent in 2020 as oil demand was hit due to the pandemic.

As part of its plans to move to investments in low carbon energy infrastructure, it plans to sell $25 billion worth of assets by 2025.

Last year, the company faced a loss of $5.7 billion and its debt rose to $39 billion by the end of 2020. The company expected its debt level to increase in H1 2021, as several payments were pending.

In February, the company had said that it expects to begin share buybacks after achieving its debt target. On Tuesday, the company said that it would update on its share buyback plans with its first quarter results that would be announced on 27 April.

Copyright © 2021 Kalkine Media Pty Ltd.

Let us discuss the stock performance of BP Plc along with Diversified Gas & Oil Plc, two energy stocks having highest dividend yield in the industry:

BP Plc’s (LON:BP)

The shares of the company were trading at GBX 300 at 14:05 GMT+1 and has a dividend yield of 6.69 per cent. The company reported a loss of $20,305 million in 2020 compared to a profit of $4,026 million in the previous year.

The company had said it would be on track to meet the net debt target of $35 billion and would meet it between the fourth quarter of 2021 and 2022’s first quarter.

Diversified Gas & Oil Plc (LON:DGOC)

The FTSE 250 gas and oil production company has a dividend yield of 9.77 per cent. The company’s adjusted revenue for the year ended 31 December 2020 came in at $553 million, 8 per cent higher than $512 million a year ago. Hedged adjusted EBITDA came in at $301 million, an increase of 10 per cent from $273 million in 2019.

The shares of the company were trading at GBX 114.80, up by 1.59 per cent on 6 April at 14:36 GMT+1.

 

 


Disclaimer
The website https://kalkinemedia.com/uk is a service of Kalkine Media Ltd (Kalkine Media), Company Number 12643132. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   

We have updated our Terms of Use, Privacy Policy & Cookie Policy. By continuing to use our website, you agree to these updates.