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Home / Business / BP’s share price rose because Exxon Rival may be the first oil giant to resume stock buybacks

BP’s share price rose because Exxon Rival may be the first oil giant to resume stock buybacks



blood pressure BP (BP) announced on Tuesday that due to asset sales and a rebound in oil prices, the company is likely to reach its debt reduction goal in the first quarter. BP shares rose.




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The European oil giant previously predicted that between the fourth quarter of 2021 and the first quarter of 2022, net debt will reach a target of $35 billion.

CEO Bernard Looney (Bernard Looney) said in a press release: “This is due to sales revenue earlier than expected, and the business performance in the first quarter was very strong.”

BP received $4.7 billion in gains from asset sales in the first quarter. Sales include a stake in a major gas field in Oman and an interest in Oman. Palantir (PLTR).

With a possible debt target, BP may resume stock repurchases soon. The company reiterated its commitment to provide shareholders with 60% cash.

Last year, BP and other oil giants Exxon Mobil (XOM), Chevron (CVX) and Royal Dutch Shell (RDSA) suspended stock buybacks due to the plunge in oil prices during the pandemic.

BP will report the complete first quarter results on April 27 and provide further updates on the repurchase plan. The company also cut its dividend last year, but did not mention it on Tuesday.


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BP inventory, oil inventory

On the stock market today, the stock rose 2.5% to 24.85. According to MarketSmith’s chart analysis, BP’s stock has begun to cool off since mid-March, but is now rebounding at its 50-day level.

Other major oil stocks fell on Tuesday. Exxon Mobil shares fell 0.2%, Chevron fell 0.8%, and Shell fell 0.5%.

At the same time, the US and Brent crude oil prices rebounded by more than 1% after being sold off on Monday, because the common case of the resurrection of top markets has increased concerns about demand.

ConocoPhillips The largest independent oil producer (COP) resumed stock buybacks last month while also controlling capital expenditure plans.

The resumption of BP stock repurchase may put greater pressure on US competitors to follow up as soon as possible. But Chevron told shareholders last month that repurchase transactions will not resume until management is convinced that they can last for many years.

Follow Gillian Rich on Twitter for energy news and more.

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