BAKU, Azerbaijan, April 1
By Leman Zeynalova - Trend:
BP expects reduction in utilization in Downstream in the first quarter of 2020, Trend reports with reference to the company.
BP’s first-quarter Downstream refining availability is expected to be in a range of 95-96 percent, with some reduction seen in utilization towards quarter-end due to reducing fuel demand;
“We expect Downstream first quarter results to be impacted by a significant and growing decline in demand for fuels, jet fuel and lubricants as countries implemented significant measures to address COVID-19. This has been particularly evident in China and, towards quarter-end, has extended into our larger US and European markets,” said the company.
BP’s first-quarter reported Upstream production is expected to be lower than fourth-quarter 2019, in a range of 2,550-2,600 mboed.
“The impact of the stronger US dollar on deferred tax balances is expected to significantly increase BP’s underlying effective tax rate in the first quarter relative to our full year guidance,” reads the report.
“BP routinely manages its working capital balances across the business with an aim to minimize cash volatility, and as a result we do not expect a benefit to cash flow from the change in first quarter quarter-end pricing.”
BP continues to review potential first quarter impairment charges and currently expects to take a non-cash, non-operating charge of around $1 billion in the quarter.
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