The oil giant had a rather tempestuous 2017. Things were not looking good early in the year, with the stock falling from £5.10 at the start of January to a range of £4.40 and £4.70 between February and late September. Yet things really picked up in the final few months of 2017, with BP hitting £5.25 in November and December.
It initially kept climbing in 2018, reaching a 7 and a half year high of £5.36 in mid-January, only to sharply pull back as the FTSE lost its momentum. BP PLC now sits at a current trading price, and 4 month low, of £4.87.
The firm’s third quarter figures at the end of October played a large part in the stocks strong end of 2017 performance. There BP reported a far better than forecast underlying replacement cost profit of $1.87 billion, basically double the $933 million managed for the same period the year previous, while announcing that its new break-even oil price is $49 per barrel. It also announced it would recommence share buybacks from the next quarter, becoming the first oil company to do so since the commodity’s drop in price in 2014.
In terms of Tuesday’s results, with the average oil price per barrel at $58, analysts are expecting BP to post net profit of $5.4 billion for 2017. However, that number might be overshadowed by the previously announced $1.7 billion Deepwater Horizon fine, and the one-off $1.5 billion charge related to Trump’s tax reforms in the US. Investors will also be on the lookout for news of the share buyback promised back in October.
BP PLC (LON:BP) has a consensus rating of ‘Hold’ alongside an average target price of £5.38.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number."