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BP to reach $35bn net debt target after strong start to the year

BP to release Q1 results on 27 April

BP (LON:BP) announced on Tuesday that it expects to reach its $35bn net debt target in Q1 of 2021.

The estimate is a result of earlier-than-expected proceeds from disposals and a “very strong quarter”, the oil company said today.

At the end of 2020, BP had a debt pile of $39bn. The company previously expected to reduce its debt to $35bn by as late as 2022.

The company plans to begin buying back shares once it reaches its debt target, and will provide an additional update upon releasing its Q1 results on 27 April.

BP also said it expects it sale proceeds to be near the upper-end of its current $4bn to $6bn range.

This follows the company making a $5.7bn loss last year as the coronavirus pandemic took a hefty toll on the oil industry.

Bernard Looney, chief executive officer at BP, commented on the announcement while looking ahead to the company’s Q1 results.

“We are pleased to announce that we now expect to have reached our $35 billion net debt target during the first quarter 2021. This is a result of earlier than anticipated delivery of disposal proceeds combined with very strong business performance during the first quarter. We look forward to updating the market at our first quarter results, including further information on share buybacks.”

On early morning trading BP’s share price is up 2.69% to 297.6p per share.


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