BP has announced it expects an increase in oil and gas production for the second quarter, as the energy giant ramps up its focus on fossil fuels to bolster profitability.
In an update to investors, the London-listed company said upstream production across oil, gas and low carbon operations is projected to rise between April and June, compared with the previous quarter.
However, lower market prices for oil are anticipated to dent BP’s second-quarter results by up to £591 million.
Net debt is expected to come in slightly lower than at the end of Q1, according to the company’s guidance.
Earlier this year, BP unveiled a revised growth strategy that places greater emphasis on extracting oil and gas. Executives admitted the business had previously moved “too far, too fast” in its transition to renewables, and confirmed plans to scale back investment in green energy.
The shift comes in response to shareholder pressure to improve returns amid volatile global markets.
Meanwhile, speculation surrounding a potential takeover by rival Shell was put to rest last month, after Shell stated that no discussions had taken place and it had “no intention” of making a bid.
