BP beats forecast with $3b profit

BP posted forecast-beating earnings of $3 billion in the fourth quarter while boosting share repurchases and vowing to make pragmatic investments, as its recently appointed CEO sought to allay investor concern over its energy transition strategy.

The company’s shares were around 5 per cent higher by 1020 GMT on Tuesday following the unexpected acceleration of the buyback programme.

The quarterly results, lifted by strong gas trading, took the energy giant’s 2023 profit to $13.8 billion, although that was half that of a year earlier as oil and gas prices cooled and refining profit margins weakened.

The earnings come as a relief to CEO Murray Auchincloss after the company substantially missed forecasts in the previous two quarters.

Auchincloss became permanent CEO in January after being named interim CEO on Sept. 12 when Bernard Looney abruptly stepped down for failing to fully disclose details of past personal relationships with colleagues.

Auchincloss told Reuters that BP remains committed to its strategy to reduce oil production by 25 per cent from 2019 levels by 2030 to 2 million barrels per day while growing its renewables and low-carbon businesses by the end of the decade.

“As we drive towards 2025 we are going to focus on simplifying the business,” he said.

“We will pragmatically adapt to what’s happening with demand in society,” he said, adding that BP could grow its oil output beyond its 3 per cent target for 2022 to 2027, depending on returns.

“We will go for the highest return and highest value projects,” he said. BP has 12 to 16 oil and gas projects that could potentially get the green light over the next two years, he said.

BP’s shares have underperformed rivals in recent months amid investor concerns over its strategy and the leadership upheaval.