NEW YORK (TheStreet) -- BP (BP) shares are down 1.15% to $38.58 in early market trading as benchmark oil prices continue to hover around multi-year lows. However, the company announced the start of production at its Kinnoull oil field in the North Sea.
Oil in the reservoir, which is located 238 kilometers east of Aberdeen, Scotland in the North Sea, will allow production there to continue for at least another decade, according to the company. Production at the site is expected to peak at about 50,000 barrels of oil equivalent per day.
"The combination of brownfield and greenfield development work - carrying out material upgrades, improving the reliability of existing facilities and retrofitting new facilities onto an existing platform - added significantly to the complexity of this project. In successfully delivering it, we have completed one of the most challenging offshore projects BP has undertaken in the North Sea," said Regional President for BP's North Sea business Trevor Garlick.
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TheStreet Ratings team rates BP PLC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BP PLC (BP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."