BP has announced it expects to report higher oil and gas production for the second quarter, as the energy giant doubles down on fossil fuels to boost profits. The London-listed company told investors that upstream production between April and June is now expected to exceed the previous three months.
The increased output incorporates higher oil production and operations, as well as gas and low carbon energy production coming in slightly higher. However, the oil business warned that lower prices received for its oil production were expected to impact results by up to 800 million dollars (£591 million).
Net debt position improves
BP also informed investors that its net debt at the end of the second quarter was expected to be slightly lower compared with the end of the first quarter. This represents a positive development for the company's financial position as it navigates volatile energy markets.
The business earlier this year revealed a new growth strategy focused on extracting more oil and gas, following pressure from some investors to boost its profits. At the time, bosses said the firm went "too far, too fast" on green energy and confirmed plans to heavily reduce spending on renewables.
Shell takeover speculation dismissed
Meanwhile, reports that Shell was exploring a possible offer to buy BP were quashed last month. Shell told investors that no talks had taken place and it had "no intention" of putting forward a bid for its London-listed rival.
(PA/London) Note: This article has been edited with the help of Artificial Intelligence.
