BP earnings preview: what to expect from its full year results

On Tuesday, the oil and gas company will reveal its full year 2018 results, with analysts expecting good things from BP’s latest trading update.

Analysts are forecasting strong growth from BP in 2019, with it one of the only oil and gas majors that is expected to expand in a year that is likely to come with a lot of challenges for energy companies.

Analysts forecast strong end to fiscal year for BP

In a recent note to investors, Deutsche Bank analyst Lucas Herrmann said: ‘Sharp commodity declines combined with a challenging downstream means the strong earnings and cash momentum apparent for much of the past two years should end this quarter’.

Herrmann went on to say that he expects the oil and gas company to record ‘good year-on-year progress with headline cash flow strongly supported by the material release of working capital, helpful for balance sheets.’

The German lender also contends that BP’s market valuation continues to ‘understate the visibility of its growth and balance in its portfolio’, with the bank supporting its ‘buy’ rating for the oil and gas major with a £5.90 a share price target.

BP share price edges higher ahead of full year earnings

With BP expected to post a rise in year-on-year profit in its full year results on Tuesday, investors clambered into the market on Monday morning and helped edge the oil and gas company’s share price higher.

In fact, the company’s share price climbed as much as 1.3% on Monday morning to £5.28 levels before losing its early gains, with the stock falling as low as £5.16 as of 16:15 CET.