The energy firm is expected to report a 60% drop in profits as takeover speculation grows
It’s a big week for big oil, with both BP and Royal Dutch Shell reporting results. Despite crude prices hitting a 2015 high at the end of last week, they are still almost 50% down since last June, which means continuing trouble for the businesses.
BP is expected to see a 60% drop in first-quarter operating profits to $2.1bn (£1.4bn), according to Société Générale analysts. There could also be costs relating to BP cancelling rigs during the quarter, while SocGen is estimating an increase in Deepwater Horizon liabilities from $468m in the fourth quarter to $550m. Shell net income could fall 49% to $2.29bn, say analysts at Bernstein.