BP sees boost from energy prices in second quarter but flags $1 billion impairment
BP•Debt declines and liabilities fall
The company said net debt stood at $22 billion to $23 billion at end-June, down from $25.3 billion at the end of March, with a target to reduce this further to $14 billion to $18 billion by the end of next year.
It made a $2.9 billion payment to redeem €2.5 billion of perpetual hybrid bonds, leaving it with a total of about $13 billion outstanding. It also paid $1.1 billion in Gulf of Mexico settlement liabilities.
Overall, BP expects net debt, hybrid bonds and Gulf of Mexico settlement liabilities to decrease by around a combined $6.3 billion to $7.3 billion from the previous quarter.
Impairments and exploration write-offs
On the $1 billion impairment flagged by BP, RBC analysts said, "We believe both LightsourceBP and Archaea could face the chopping block (although not formally announced by the company as far) and see no place for either in BP's portfolio long term."
