BP (BP) announced on Tuesday that it is likely to meet its debt reduction target in the first quarter, aided by asset sales and the recovery in oil prices. BP share rose.
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The European oil major previously predicted that it would reach its target of $ 35 billion in net debt between Q4 2021 and Q1 of 2022.
“This is due to earlier expected returns on sales, coupled with very strong operating performance during the first quarter,” CEO Bernard Looney said in a statement.
BP received $ 4.7 billion in revenue from asset sales during the first quarter. The sales have an interest in a large gas field in Oman and an interest in Palantir (PLTR).
With its likely debt target, BP may soon buy back on equities. The company reiterates its promise to deliver 60% of the excess cash to shareholders.
Last year, BP and other majors such as Exxon Mobile (XOM), Chevron (CVX) and Royal Dutch shell (RDSA) suspended buybacks as oil prices plummeted during the pandemic.
BP will report full Q1 results on April 27 and provide further updates on the repurchase program. The company also lowered its dividend last year, but did not mention it on Tuesday.
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BP inventory, oil supplies
Shares rose 2.5% to 24.85 on the stock market today. BP shares have cooled since mid-March, but are now reflecting a test on its 50-day line, according to the MarketSmith chart analysis.
Other top oil supplies fell Tuesday. Exxon shares fell 0.2%, Chevron 0.8% and Shell 0.5%.
Meanwhile, the U.S. and Brent crude oil prices fell more than 1% after selling on Monday as resurgence in top markets sparked fears of demand.
ConocoPhillips (COP), the largest independent oil producer, resumed its share repurchase last month, while also keeping capital expenditure plans in check.
The resumption of the repurchase of BP shares could put more pressure on US competitors to follow soon. However, Chevron told shareholders last month that buybacks will not start again until management is convinced they can be sustained for several years.
Follow Gillian Rich Twitter for energy news and more.
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