British oil major BP reported a sharp drop in fourth-quarter profit on weaker refining margins, despite announcing a $1.75 billion share buyback and pledging to “fundamentally” reset its strategy. The company attributed the 48% decline in underlying replacement cost profit (RC profit) to factors including weaker realized refining margins, higher impact from turnaround activity, and seasonally lower customer volumes.
Despite this, BP’s net debt increased 10% year-on-year to just shy of $23 billion, while capital expenditure dropped to $3.7 billion in the October-December period. The company launched a share buyback program with a dividend per ordinary share of $0.08, which analysts had previously questioned.
In its business breakdown, BP noted a 15% year-on-year drop in RC profit performance from its gas & low carbon energy division, despite a sharp recovery from the previous quarter. Oil production and operations jumped 37% on an annual basis, but the company flagged an overall “weak” contribution from its oil trading division due to weaker refining margins.
BP shares were little changed following the results, down just 0.13%. CEO Murray Auchincloss stated that the company will “fundamentally reset its strategy and drive further improvements in performance” as part of growing cash flow and returns. The company’s restructuring efforts include a planned further overhaul ahead, with a focus on cutting costs and reshaping its portfolio.
BP has broadly underperformed its peers over the past year, but shares gained ground on Monday following reports that activist investor Elliott Management has built a stake in the struggling oil major. However, concerns remain over the clarity of BP’s strategic direction amid its sprawling green energy ambitions.
Source: https://www.cnbc.com/2025/02/11/bp-earnings-q4-2024.html