MARKET TALK: BP Debt Level Rise Seen Unlikely In 2Q Results

12th Jul 2010 10:10

0910 GMT [Dow Jones] BP's (BP) level of debt is unlikely to rise despite in its 2Q results spending billions of dollars on the oil spill clean-up, says Collins Stewart. "We see 2Q operating cashflow of around $7Bln. If we assume capex of $4.5Bln and spill containment/cleanup costs of around $3Bln, this would leave BP's net debt little changed over the quarter in the absence of any dividends," it says. "We continue to see good near-term upside in the shares, most particularly if the first relief well is successful," it adds. Gives buy rating, 450p target. Shares +6.8% at 389p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 12, 2010 05:10 ET (09:10 GMT)