Dan Coatsworth, head of markets at AJ Bell, said: “One of the key worry points for investors over BP is its balance sheet. In that context, it’s not a surprise to see significant debt reduction get a warm reception.
“It wasn’t all good news. Production is lower thanks to maintenance work and Middle East disruption, and the refining business is still suffering a hangover from a fire at its Whiting refinery in Indiana.
“Ongoing volatility in oil prices makes forecasting the immediate outlook for the earnings of BP and its peer group difficult.
“However, one thing is clear: the move away from renewables and back towards a focus on the bread-and-butter hydrocarbon operations is set to continue.
“BP’s announcement of a $1 billion impairment charge in its gas and low-carbon energy transition businesses and news Shell is selling its Indian renewables business reinforce this trend.
“BP is in a state of limbo at executive level after the acrimonious departure of chair Albert Manifold and shareholders will be looking for an update from CEO Meg O’Neill on the search for his successor at the next set of results.
“BP can ill-afford any sign of drift as it looks to rebuild its credibility with the market after a difficult and fractious few years for the business.”
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