BP sees lower first quarter upstream production

(Sharecast News) - Energy giant BP on Friday said it expected to report lower first-quarter upstream production than in the previous three months. In a trading update, the company said it saw slightly higher volumes in oil production and operations, but expected lower output in gas and low-carbon energy. Gas marketing and trading is expected to be "weak," it added.

Oil production and operations earnings were expected to be broadly flat from the previous quarter, partly due to price lags in the Gulf of Mexico and the UAE. In the gas and low-carbon energy segment, realisations were also forecast to be flat.

Net debt at the end of the period was forecast to be $4bn higher quarter on quarter driven primarily by a working capital build, which was largely expected to reverse, reflecting seasonal inventory effects, timing of payments including annual bonus payments and payments related to low carbon assets held for sale.

Reporting by Frank Prenesti for Sharecast.com