BP Warns of Rising Debt Amid Lower Output, Weak Gas Trading (3)

BP Plc said debts mounted in the first quarter, yet another setback for the UK energy major as it struggles to turn its finances around.

Net debt climbed about $4 billion from the prior quarter, BP said Friday, citing an increase in working capital. It also reported lower upstream production and weak gas trading — disappointing for a company pivoting back toward its core fossil-fuel business.

The guidance comes just a few months after BP unveiled plans to refocus on oil and gas and spend less on clean energy amid pressure from activist investor Elliott Investment Management. Since the end ...