BP says Q1 oil trading result expected to be exceptional

Gas and low carbon energy segment realizations are expected to be broadly flat compared to the prior quarter. These include the impact of price lags and the changes in non-Henry Hub natural gas marker prices. The gas marketing and trading result is expected to be average. Oil production and operations segment realizations are expected to have an impact compared to the prior quarter in the range of +$0.1B-$0.2B. These include the significant impact of the price lags on BP‘s (BP) production, particularly in the Gulf of America and the UAE where production is priced on one and two month lagged basis respectively. Compared to the prior quarter, reflecting production mix, cash costs are $0.1B higher and DD&A charge is broadly flat due to a higher unit charge. Customers and products segment compared to the prior quarter, results are expected to reflect the following factors: customers – seasonally lower volumes and lower retail fuels margins, more than offset by stronger midstream performance; products – stronger realized refining margins in the range of +$0.1B-$0.2B and a lower impact from turnaround activity. The company said the oil trading result is expected to be exceptional.