Why Shares Of BP Are Up By 4% Today?

BP Video 04/06/21
BP has met its net debt target
Scroll to continue with the content
display
Weber
Mantolama Teklifi Alın!
Mantolama kararı alındıktan sonra yapılması gereken ilk iş ön keşiftir. Bu aşama için bize 444 6 990 numaralı Weber Çözüm Hattı’mızdan ulaşabilirsiniz
EK BILGI
BP's shares rose sharply after the company announced it would hit its net debt target of $ 35 billion in the first quarter of 2021.
BP said it received sales proceeds of approximately $ 4.7 billion in the first quarter. The company expects the proceeds of the disposal to "be at the high end of the previously announced $ 4-6 billion range" in 2021.
BP also stated that business performance was very strong in the first quarter of 2021, which allowed the company to hit its debt target.
The market's reaction to the news is so strong that BP plans to return at least 60% of excess cash flow to shareholders when the net debt target is met. The company plans to return that cash flow through share buybacks.
What's next for BP?
BP announced that it will provide additional information on share buybacks when the company releases its first quarter results on April 27th. While BP's shares have moved away from the lows of $ 15 levels hit in October 2020, they remain well below prepandemic levels.
Meanwhile, the oil market continues to recover and WTI oil is trading near the $ 60 level despite concerns over the third wave of viruses in Europe and the challenging situation in Brazil and India.
With that in mind, share buybacks can be seen as a good way to return capital to shareholders as BP would buy its shares on reasonable terms. Analysts believe the company will post earnings of $ 1.82 per share in 2021 and earnings of $ 2.65 per share in 2022, meaning the stock will trade at a forward P / E of less than 10.
Should oil manage to stay above the psychologically important $ 60 level, BP stocks have a good chance of gaining additional upward momentum as investors and speculative traders would be drawn to the upcoming share buyback program and cheap valuation.
In our economic calendar you will find all the economic events of today.
This article was originally published on FX Empire
More from FXEMPIRE:
Daily USD / CAD Forecast - US dollar tries to rebound against Canadian dollar
Crude Oil Price Update - Trader's reaction to $ 59.58 sets the tone ahead of the weekly API inventory report
Gold Price Forecast - Gold Markets Reach Resistance
Crude Oil Price Forecast - Crude Oil Markets Recover From Trend Line
Tradeweb stocks are up about 3% from their daily record trading volume in March
Natural gas price forecast - testing below the trend line
In this article:
BP
+ 1.08%
Mention your own website in this post for Advertisement

Last News

Prince Philip’s Daughter-In-Law, Sophie, Countess Of Wessex, Discusses His Final Moments

CDC chief urges Michigan to ‘close things down’ amid alarming COVID-19 spike

NFL Legend Troy Aikman Reveals He Still Has Abs in a New Shirtless Photo

Gregg Popovich, Doc Rivers speak out after Daunte Wright shooting: ‘We’re canceling Black lives’

NFL Rumors: Russell Wilson, Pete Carroll reportedly reached out to Giovani Bernard

U.S. senator wants to ban Big Tech from buying anything ever again