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Short Interest in BP Surges ahead of Its Q1 Results

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Short interest in BP

Short interest in BP (BP) has risen by 0.04 percentage points since March 12, 2019, to its current level of 0.20%.

Usually, a surge in short interest implies an increase in bearish sentiments in a stock. Since March 12, BP stock has risen 5.2%.

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Why the change in sentiments in BP?

The increase in negative sentiments in BP stock could be the result of an expected earnings fall in its upcoming results. BP’s EPS are expected to fall 12% YoY (year-over-year) to $0.69 in the first quarter of 2019 due to the expected falls in its upstream and downstream earnings. Brent prices dropped YoY in the first quarter, which likely affected BP’s upstream realizations and earnings.

Also, the regional marker margin, the indicator of the company’s refining margin, fell YoY in the first quarter, pointing to a possible fall in its refining margin and earnings in the first quarter. BP is expected to post its first-quarter earnings results on April 30, 2019.

Peers’ short interests

Since March 12, short interest in Equinor (EQNR) has risen by 0.02 percentage points, and short interest in PetroChina (PTR) has risen by 0.03 percentage points. Currently, EQNR and PTR have short interests of 0.14% and 0.06%, respectively. Also, short interest in YPF has risen 0.28 percentage points since March 12 to the current level of 0.91%.

Since March 12, the stock prices of Equinor, PetroChina, and YPF have risen 4.9%, 1.1%, and 7.0%, respectively.

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