Share buyback frenzy in Big Oil
Energy company BP Plc said it will continue its share buybacks even though first-quarter profit and cash flow fell more than expected and net debt increased.
BP has also focused on share buybacks, involving companies such as Shell Plc, TotalEnergies SE and Chevron Corp.
BP has pledged to buy back $3.5 billion in shares in the first half of the year, at the same pace as previous quarters. But despite strong gains from oil and gas trading, BP reported weakness in some key financial underpinnings of shareholder returns, even with Brent crude above $80 a barrel.
BP’s profit in the first quarter of this year was 2.7 billion dollars. Profit in this period decreased by 40 percent compared to the profit in the first quarter of last year. The company’s first quarter profit was below market expectations of $2.87 billion. Bp had announced a profit of $3 billion in the previous quarter.
The decline in BP’s profits was due to declining oil and gas prices and outages at its refinery in the United States.
In his evaluation of the results, BP Chief Executive Murray Auchincloss stated that the company performed strongly in the first quarter and made progress in its strategy. Auchincloss stated that they are continuing their simplification efforts within the company and that they plan to reduce costs by at least 2 billion dollars by the end of 2026 through digital transformation, supply chain efficiency and global talent centers.