BP expected to hit $35 billion net debt target including the delivery of sale proceeds and performance in the Q1 of 2021, according to BP’s press release.
Bernard Looney, BP’s CEO, stated: “We are pleased to announce that we now expect to have reached our $35 billion net debt target during the first quarter 2021. This is a result of earlier than anticipated delivery of disposal proceeds combined with very strong business performance during the first quarter. We look forward to updating the market at our first quarter results, including further information on share buybacks.”
The company’s net debt was $38.9 billion at the end of 2020. It had expected that debt level to rise in the H1 of 2021 due to several payments due. However, BP has received about $4.7 of 2021 billion of disposal proceeds in Q1 and the company expects disposal proceeds in 2021 to be at the top of the range $4 billion to $6 billion.
BP aims to sell $25 billion of assets by 2025 which is now underpinned by agreed or completed transactions of around $14.7 billion with approximately $10.0 billion of proceeds received.
BP plans to start share buybacks once it reaches its debt target and it would provide an update on share buybacks on April 27, 2021.