BP earnings preview: what to expect from its full year results
The market is expecting good things from the oil and gas major this year, with analysts forecasting that the company will be one of the few big firms to see strong growth in 2019.
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 15:15 GMT.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
See your opportunity?
Seize it now. Trade over 17,000+ markets on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
