Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

BP shares surge on $1.75bn buyback despite 2023 profit slump

(Sharecast News) - Shares in BP surged on Tuesday as the energy giant announced a $1.75bn share buyback despite a slump in annual profits as oil prices fell during 2023 from the spike caused by Russia's invasion of Ukraine. Full--year underlying replacement cost profit - the company's preferred earnings measure - halved to $13.8bn from $27.6bn a year earlier. Looking ahead, BP expects first quarter 2024 reported upstream production to be higher compared to the final three months of the 2023.

Fourth-quarter profits beat estimates, coming in at $3bn, although well down on 2023's $4.8bn, it was better than the $2.77bn in its own compilation of consensus forecasts. That compared with a $3.3bn profit in the third quarter and $4.8bn a year earlier.

Quarterly results reflected strong gas trading results and higher oil and gas prices which were still hit by "significantly lower" refining margins, weak oil trading and exploration impairments.

Energy firms made bumper profits when oil and gas prices surged after Russia's unprovoked invasion of Ukraine in February 2022 and sparked fears over supplies. The price of benchmark Brent crude oil hit nearly $128 a barrel soon after the invasion, but is now below $80.

BP maintained its quarterly dividend at 7.27 cents per share and upped the level of share buybacks from $1.5bn in the previous three months. It also committed to repurchasing $3.5bn of shares in the first half of 2024.

The results are the first released by BP since the company appointed Murray Auchincloss as its new chief executive after his predecessor Bernard Looney, resigned last September after admitting he had not been "fully transparent" about his past personal relationships at the firm.

The board said Looney had committed "serious misconduct", resulting in him forfeiting up to £32.4m in remuneration.

Reporting by Frank Prenesti for Sharecast.com

Share this article

Related Sharecast Articles

Huddled Group buys Food Circle for £0.3m
(Sharecast News) - E-commerce investor Huddled Group announced the acquisition of online retailer Food Circle Supermarket on Friday, for total consideration of up to £0.3m.
Bens Creek shares fall as it moves mine into care and maintenance
(Sharecast News) - Shares in North American metallurgical coal miner Bens Creek were sliding on Friday afternoon, after the company issued an update on its operations and working capital position, confirming that its West Virginia mine was moving into care and maintenance.
Premier Miton reports rise in assets under management
(Sharecast News) - Premier Miton Group said in an update on Friday that as of 31 March, its assets under management totalled £10.7bn, making for an increase from the £9.8bn it recorded on 30 September.
Tern raises £0.42m to invest in Wyld Networks
(Sharecast News) - Specialist internet-of-things technology investor Tern announced on Friday that it hs raised £0.42m before expenses, to invest in Wyld Networks.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.