uploads/2017/08/Stock.jpg

Why Did BP Stock Rise 3.2% on August 1?

By

Updated

BP’s stock performance

BP (BP) announced its 2Q17 earnings on August 1, 2017. BP stock opened at $36.2 on August 1—higher than the previous day’s close of $35.2. The rise in BP’s stock price was due to the company surpassing its 2Q17 estimates. BP stock saw a high of $36.5 and a low of $36.1 during the day. Eventually, BP stock closed at $36.3—about 3.2% higher than the previous day’s close. The broader market was up marginally on August 1. BP’s peers Royal Dutch Shell (RDS.A), ExxonMobil (XOM), and Chevron (CVX) also saw a rise in their stock prices on August 1. In contrast, crude oil prices fell.

On August 1, crude oil prices fell 2.0%. However, Shell, ExxonMobil, and Chevron rose 0.5%, 0.2%, and 1.5%, respectively, on August 1. The SPDR Dow Jones Industrial Average ETF (DIA) and the SPDR S&P 500 ETF (SPY) rose 0.3% and 0.2%, respectively.

Article continues below advertisement

BP’s 2Q17 update

BP’s organic capex (capital expenditure) for 2Q17 was $4.3 billion—compared to $4.2 billion in 2Q16. BP expects its organic capex to be ~$15 billion–$17 billion in 2017. In 2016, BP’s 2016 organic capex was $16 billion.

In its 2Q17 press release, BP’s group chief executive, Bob Dudley, said, “We continue to position BP for the new oil price environment, with a continued tight focus on costs, efficiency and discipline in capital spending. We delivered strong operational performance in the first half of 2017 and have considerable strategic momentum coming into the rest of the year and 2018, with rising production from our new Upstream projects and marketing growth in the Downstream.”

Advertisement

More From Market Realist