Higher energy prices and strong results from the trading division helped British Petroleum to record a solid start to the year, according to the Wall Street Journal. The results gave the first indication that major oil companies are on the path to recovery after pandemic-induced losses last year.
BP said it was on track to lower net debt to $35 billion in the first quarter, a level the company expects to trigger share buy backs.
The oil giant received about $4.7 billion in disposal proceeds during the first quarter of the year.
BP aims to sell $25 billion of assets between the second half of 2020 and 2025 and is over half way to meeting the goal with $14.7 billion sold.
The company plans to boost shareholder returns once it has lowered its debt, committing to return at least 60% of surplus cash as buybacks.
The oil giant will update on its share buyback plans when it reports the first-quarter earnings on April 27.
BP is currently undertaking a strategic revamp to reduce dependence on oil, while increasing investments in cleaner energy.British Petroleum stock is currently gaining. BP: NYSE is up 2.51% on premarket.
