BP profits slump to $2.7bn amid falling oil prices
BP (BP.L) has revealed a fall in profits in the face of lower oil prices but will continue to pump money to shareholders as it announced a $1.75bn (£1.39bn) share buyback.
The oil major reported an underlying profit of $2.7bn in the first quarter of 2024, below a consensus forecast from analysts of $2.9bn.
BP said its earnings had fallen because of lower oil and gas prices compared with the same period last year.
The impact of the Whiting refinery outage and a significantly weaker fuels margin also hit earnings.
Underlying replacement cost profit — its preferred measure — was $1.6bn in the first quarter, down from $8.7bn a year earlier.
The group also saw net debt increase to $24bn from $20.9bn in the fourth quarter of 2023.
Looking ahead, BP expects second quarter 2024 reported upstream production to be slightly lower than the first-quarter.
The London-listed (^FTSE) company also revealed plans to deliver $2bn in extra in cost savings by 2026.
The energy company maintained the pace of its share buyback scheme at $1.75bn for the quarter.
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Kate Thomson, chief financial officer at BP, said: “BP reported solid financial performance in the first quarter with adjusted EBITDA of $10.3bn and underlying replacement cost profit of $2.7bn.
"Our financial frame is unchanged, and we are delivering competitive shareholder distributions, announcing a $1.75bn share buyback for the first quarter as part of our commitment of $3.5bn for the first half of 2024.”
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