BP Cuts Net Debt by $8 Billion and Reaches 2027 Target Early

BP reduced net debt by about $8 billion over the past three months, reaching its 2027 net-debt target ahead of schedule as stronger energy trading and oil refining profits lifted the company’s outlook.

BP shares rose 3.5% Tuesday, Oct. 13, reaching an intraday 52-week high of $48.74. Surging energy prices drove stronger profits from energy trading and oil refining, supporting the debt reduction.

The company is expected to issue an earlier-than-planned strategy update in December. The update is expected to outline the next phase of BP’s efforts to streamline its operations, strengthen its financial position and improve long-term value.

BP’s transition businesses recorded about $10 billion in impairments over the past year, equal to roughly 10% of its pre-pandemic equity. Recent positive operating indicators led to higher net profit forecasts from analysts.

The December strategy update will be BP’s next scheduled step as the company addresses its balance sheet and reviews the direction of its transition businesses.