BP Expects $4B to $5B Impairment Charges in Q4 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Impairment Charge Expectation: BP anticipates post-tax impairment charges of $4B to $5B in Q4, primarily linked to its gas and low-carbon energy segments, which will negatively impact financial performance.
- Stable Production Outlook: The company expects upstream production in Q4 to remain flat compared to the previous quarter, although oil and gas output is projected to decline, reflecting weak market demand.
- Price Realization Impact: The gas and low-carbon energy segment is expected to see a $0.1B to $0.3B negative impact on results due to fluctuations in natural gas prices outside of Henry Hub.
- Net Debt Changes: BP's net debt is projected to range between $22B and $23B at the end of Q4, down from $26.1B at the end of Q3, indicating improved financial management.
Analyst Views on BP
Wall Street analysts forecast BP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BP is 35.90 USD with a low forecast of 6.29 USD and a high forecast of 44.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
6 Buy
4 Hold
0 Sell
Moderate Buy
Current: 34.410
Low
6.29
Averages
35.90
High
44.00
Current: 34.410
Low
6.29
Averages
35.90
High
44.00
About BP
BP p.l.c. is a United Kingdom-based integrated energy company. Its segments include Gas & low carbon energy, Oil production & operations, Customers & products, and Other businesses & corporate. The gas & low carbon energy comprises regions with upstream businesses that predominantly produce natural gas, gas marketing and trading activities and its solar, wind and hydrogen businesses. The oil production & operations segment comprises regions with upstream activities that predominantly produce crude oil, including bpx energy. The customers & products segment comprises its customer-focused businesses, which include convenience and retail fuels, electric vehicle (EV) charging, as well as Castrol, aviation and business-to-business (B2B) and midstream. It also includes its products businesses, refining and oil trading, as well as its bioenergy businesses. The other businesses and corporate also comprises the Company's shipping and treasury functions, and corporate activities worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
