BP has forecast its net debt to be around $4bn higher at the end of its Q1 results, compared to Q4 2024.

The oil and gas giant said this has been driven primarily by a “working capital build”, which it added is largely expected to reverse, reflecting seasonal inventory effects, timing of payments including annual bonus payments, and payments related to low carbon assets held for sale.

BP, which was issuing a trading update for Q1, said it expects its gas marketing and trading earnings for the quarter to be “weak”, when it publishes its group results for Q1 on 29 April.

The group did not give further details on its gas trading result, but did reveal that its upstream production in Q1 is expected to come in lower compared to the previous quarter, with production slightly higher in oil production and operations, and lower in gas and low carbon energy.

“While a preview of quarterly figures ordinarily wouldn’t be assigned too much significance by serious investors, such is the pressure BP and its management are under that they have little margin for error,” commented investment director at AJ Bell, Russ Mould.

“The teaser ahead of next month’s full quarterly results also presses on one of the market’s big sore points with the company – its onerous debt pile. While BP has pegged the increase in leverage on seasonal issues and expects to see this unwind in future quarters, there will still be nagging concerns about the uptick.”

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