BP shares rise as oil major signals strong trading performance
Investing.com -- BP PLC (LON:BP) shares climbed as much as 2.4% to a three-month high after the oil major signaled strong trading performance in its second-quarter update.
Analysts at Jefferies said the update should drive a "material uplift" to earnings expectations, potentially pushing consensus earnings up by over 10%. The positive reaction comes after rival Shell delivered a weaker update earlier this week.
Jefferies analyst Giacomo Romeo highlighted that BP’s better-than-expected performance was driven by higher upstream volumes and stronger trading contributions than anticipated.
The oil company also guided for slightly lower net debt, which analysts believe should be well-received by investors. Jefferies sees small upside to consensus for cashflow from operations before working capital adjustments.
Jefferies maintains a hold rating on BP shares with a price target of 390 pence.
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