BP Stock In Spotlight After Flagging Higher Debt, Lower Q1 Production

BP Plc (BP) stock drew retail attention on Friday after the company said its net debt rose by $4 billion at the end of the first quarter while its upstream production would be lower than the previous quarter.

The company said the rise in debt was driven primarily by a working capital build. BP said it is largely expected to reverse, reflecting seasonal inventory effects and the timing of payments, including annual bonus payments and payments related to low-carbon assets held for sale.

Its quarterly production was hit by lower gas and low-carbon energy output, which fell due to divestments in Egypt and Trinidad. This was slightly offset by a rise in oil production.

BP’s reported production for the fourth quarter was 850,000 barrels of oil equivalent per day.

The company had projected full-year 2025 production to be lower than in 2024, with oil production remaining roughly flat and declining gas and low-carbon energy output.

The company is in the midst of a strategic reset after several years of underperformance. Its chair, Helge Lund, said earlier this month that he would step down sometime in 2026.

The oil major said in February that it would raise its investment in oil and gas to $10 billion per year and lift production to 2.3 million to 2.5 million boe/d by 2030.

BP said on Friday that stronger refining margins could help lift its earnings by $100 million to $300 million.

Retail sentiment on Stocktwits was in the ‘bearish’ (44/100) territory on Thursday, while retail chatter was ‘low.’

BP shares have fallen 11.7% year-to-date (YTD) amid a decline in oil prices due to recession fears.

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