27th Apr 2021. 2.06pm

Regency View:
Market Alert: BP Q1 Results
BP bounces as Q1 earnings treble
BP’s share price has bounced 2% in European trading following an upbeat set of Q1 results.
The UK oil & gas giant said profits had more than trebled during the first quarter of the year – driven by “exceptional” gas trading performance, significantly stronger oil prices and improved refining margins.
Having been heavily impacted by the pandemic, BP’s CEO, Bernard Looney has been keen to convince investors that BP can “develop competitive cash returns…and at the same time invest to transition BP to a low-carbon future”.
Net debt has fallen from $38.9bn at the end of 2020 to $33.3bn in the first quarter, beating its target of $35bn. BP also announced plans to return at least 60% of surplus cash flow to shareholders through share buybacks.
Technicals
Whilst BP’s dominant technical structure is one of a six-month uptrend, prices have moved into a clearly-defined range in recent weeks.
Today’s bounce has taken prices back towards the top of the range, but whether the robust Q1 results will be enough to break clear of 309p resistance remains to be seen.
There’s plenty of space above and below the narrow trading range, and we will use the range as trigger levels for our short-term trade setups.
Disclaimer:
This research is prepared for general information only and should not be construed as any form of investment advice.