BP reaches $35 billion net debt target before set date

London-based energy firm BP reported on Tuesday it expects to have reached its $35 billion net debt target in the first three months of this year earlier than set and make way to fulfill its pledge of shares buyback.

The news pushed BP shares to increase up to 3% to 299 pence in early trade. With today’s gain, BP shares are now 16% higher this year, after decreasing 45% last year on pandemic drag affecting oil demand.

BP recorded a total of $5.7 billion loss in 2020 and posted a debt pile of $39 billion at the end of the year. The firm had anticipated its debt level to increase in the first two quarters of 2021 due to payments due.

However, the firm produced nearly $4.7 billion from sale proceeds in the first quarter.

BP targets to sell $25 billion of assets by 2025 as part of the firm’s campaign to shift to low carbon energy investments.

On Tuesday, BP said it expects sale proceeds in 2021 to be near the top of its current $4 billion to $6 billion range.