© Reuters. FILE PHOTO: BP signage can be seen on a petrol station near Brighton, UK
(Reuters) – BP (NYSE 🙂 expects to hit its net debt target of $ 35 billion in the first quarter of 2021, the energy company said Tuesday after divestment proceeds were earlier than expected and a “very strong” quarter.
The company, which had a mountain of debt of $ 39 billion at the end of 2020, had previously expected to reduce its debt to $ 35 billion by the fourth quarter of 2021 or the first quarter of 2022.
BP plans to start buying back shares once the debt target is met. The company announced that it will provide an update on share buybacks on April 27 as part of its first quarter results.
The London-based company on Tuesday expects sales revenue in 2021 to be at the high end of its existing range of $ 4 billion to $ 6 billion.
The oil major plunged to a $ 5.7 billion loss for the first time in a decade as the COVID-19 pandemic weighed heavily on oil demand and warned of a difficult start to 2021 in February amid widespread travel restrictions .
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