We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BP Tops Q1 Earnings Estimates, Aims to Resume Buybacks in Q2
Read MoreHide Full Article
BP plc (BP - Free Report) reported first-quarter 2021 adjusted earnings of 77 cents per American Depositary Share (ADS) on a replacement cost basis, excluding non-operating items. The bottom line beat the Zacks Consensus Estimate of earnings of 43 cents per share and also improved from the year-ago earnings of 24 cents.
Total revenues of $36,492 million increased from $30,863 million in the year-ago quarter and beat the Zacks Consensus Estimate of $31,415 million.
The strong quarterly results were owing to higher realizations of commodity prices.
For the first quarter, total production of 1,309 thousand barrels of oil equivalent per day (MBoe/d) declined from 1,679 MBoe/d in the year-ago quarter. Reduction in capital investments hurt the production level.
BP sold liquids at $52.92 a barrel in the first quarter compared with $47.64 in the prior-year period. Moreover, it sold natural gas at $4.11 per thousand cubic feet compared with $1.44 in the year-ago quarter. Overall price realization rose to $46.81 per Boe from the year-ago level of $37.10.
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $1,565 million. The figure improved significantly from earnings of $895 million in the year-ago quarter. Higher realized commodity prices primarily caused the upside, partially offset by lower production.
Gas & Low Carbon Energy:
Segmental profits surged to $2,270 million from $847 million in the year-ago quarter, primarily due to considerable contributions from gas marketing and trading activities.
Notably, for the first quarter, total production of 909 thousand barrels of oil equivalent per day (MBoe/d) improved from 900 MBoe/d in the year-ago quarter. Contributions from growth projects in India and Oman primarily aided the production level.
Customers & Products:
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $656 million, down from $921 million in the year-ago comparable quarter. The segment was hurt by weaker results from refining activities.
Notably, BP-operated refining availability for the March quarter was reported at 94.8%, reflecting a decline from 96.1% in the year-ago comparable quarter.
Rosneft:
Earnings from the segment amounted to $363 million, comparing favorably with the loss of $17 million in the March quarter of 2020. Higher oil price aided the segment results.
Capex
Organic capital expenditure for the first quarter of 2021 was recorded at $2,906 million. Notably, the company reported total capital spending for the quarter of $3,798 million.
Financials
BP's net debt — including leases — was $42,380 million at first quarter-end versus $60,618 million in the prior-year quarter. Gearing was recorded at 31.9% compared with 40.1% in the prior-year quarter.
Outlook
The British energy giant expects oil demand to recover this year on the rolling out of coronavirus vaccines and the relaxation of social-distancing measures. The company added that the strong growth in the United States and China is aiding oil demand.
Since the company has successfully reduced net debt below its $35-billion target, it is planning to launch share buybacks worth $500 million in the June quarter.
For 2021, the company reaffirmed its projection for capital spending at around $13 billion. Notably, the integrated energy firm projected 2021 payments associated to the Gulf of Mexico oil spill incident at $1 billion post tax.
Zacks Rank & Stocks to Consider
BP currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include EOG Resources, Inc. (EOG - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) and Matador Resources Company (MTDR - Free Report) . While Matador carries a Zacks Rank #2 (Buy), EOG Resources and Diamondback sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EOG Resources is likely to see earnings growth of 272.6% in 2021.
Diamondback is expected to witness earnings growth of 112.5% in 2021.
Matador is likely to see earnings growth of 300% in 2021.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Image: Bigstock
BP Tops Q1 Earnings Estimates, Aims to Resume Buybacks in Q2
BP plc (BP - Free Report) reported first-quarter 2021 adjusted earnings of 77 cents per American Depositary Share (ADS) on a replacement cost basis, excluding non-operating items. The bottom line beat the Zacks Consensus Estimate of earnings of 43 cents per share and also improved from the year-ago earnings of 24 cents.
Total revenues of $36,492 million increased from $30,863 million in the year-ago quarter and beat the Zacks Consensus Estimate of $31,415 million.
The strong quarterly results were owing to higher realizations of commodity prices.
BP p.l.c. Price, Consensus and EPS Surprise
BP p.l.c. price-consensus-eps-surprise-chart | BP p.l.c. Quote
BP’s Operational Performance
Oil Production & Operations:
For the first quarter, total production of 1,309 thousand barrels of oil equivalent per day (MBoe/d) declined from 1,679 MBoe/d in the year-ago quarter. Reduction in capital investments hurt the production level.
BP sold liquids at $52.92 a barrel in the first quarter compared with $47.64 in the prior-year period. Moreover, it sold natural gas at $4.11 per thousand cubic feet compared with $1.44 in the year-ago quarter. Overall price realization rose to $46.81 per Boe from the year-ago level of $37.10.
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $1,565 million. The figure improved significantly from earnings of $895 million in the year-ago quarter. Higher realized commodity prices primarily caused the upside, partially offset by lower production.
Gas & Low Carbon Energy:
Segmental profits surged to $2,270 million from $847 million in the year-ago quarter, primarily due to considerable contributions from gas marketing and trading activities.
Notably, for the first quarter, total production of 909 thousand barrels of oil equivalent per day (MBoe/d) improved from 900 MBoe/d in the year-ago quarter. Contributions from growth projects in India and Oman primarily aided the production level.
Customers & Products:
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $656 million, down from $921 million in the year-ago comparable quarter. The segment was hurt by weaker results from refining activities.
Notably, BP-operated refining availability for the March quarter was reported at 94.8%, reflecting a decline from 96.1% in the year-ago comparable quarter.
Rosneft:
Earnings from the segment amounted to $363 million, comparing favorably with the loss of $17 million in the March quarter of 2020. Higher oil price aided the segment results.
Capex
Organic capital expenditure for the first quarter of 2021 was recorded at $2,906 million. Notably, the company reported total capital spending for the quarter of $3,798 million.
Financials
BP's net debt — including leases — was $42,380 million at first quarter-end versus $60,618 million in the prior-year quarter. Gearing was recorded at 31.9% compared with 40.1% in the prior-year quarter.
Outlook
The British energy giant expects oil demand to recover this year on the rolling out of coronavirus vaccines and the relaxation of social-distancing measures. The company added that the strong growth in the United States and China is aiding oil demand.
Since the company has successfully reduced net debt below its $35-billion target, it is planning to launch share buybacks worth $500 million in the June quarter.
For 2021, the company reaffirmed its projection for capital spending at around $13 billion. Notably, the integrated energy firm projected 2021 payments associated to the Gulf of Mexico oil spill incident at $1 billion post tax.
Zacks Rank & Stocks to Consider
BP currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include EOG Resources, Inc. (EOG - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) and Matador Resources Company (MTDR - Free Report) . While Matador carries a Zacks Rank #2 (Buy), EOG Resources and Diamondback sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EOG Resources is likely to see earnings growth of 272.6% in 2021.
Diamondback is expected to witness earnings growth of 112.5% in 2021.
Matador is likely to see earnings growth of 300% in 2021.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Today, Download Marijuana Moneymakers FREE >>