BP’s profits have slumped compared to the massive gains recorded in 2022 as fossil fuel costs drop.
Oil giant British Petroleum (BP) posted a better-than-expected first quarter (Q1 2023) profit, which is up from the last quarter, Q4 2022. But that number has come down from the extraordinary profits the company posted during his 2022 blockbuster, when fossil fuel prices surged sharply following Russia’s invasion of Ukraine.
BP Q1 2023 results
The UK energy giant reported an underlying replacement cost gain of $4.96 billion in the first quarter. That topped his net income of $4.8 billion in the fourth quarter of 2022, but fell short of his net income of $6.2 billion recorded in the first quarter of 2022. Analysts expect British Petroleum to report his $4.3 billion profit in the first quarter of this year.
British Petroleum’s first quarter results reflect strong oil and gas trading.BP CEO Bernard Looney talking about development Said:
“This has been a quarter of strong performance and strategic performance as we continue to focus on safe and reliable operations. We will continue to provide benefits to our shareholders through
BP Stock Price and Share Buybacks
BP shares fell more than 5% in morning trading on the London Stock Exchange, dropping to the bottom of the pan-European Stoxx 600 index. The energy giant said it expected $4 billion in annual share buybacks. That remains at the lower end of the company’s $14 billion to his $18 billion capex range.
BP reports full-year profit of $27.7 billion for 2022, more than double the previous year. He was in 2008 when an oil major last recorded this huge profit. Despite a barrage of criticism, the oil giant has sought to protect its profits, emphasizing the importance of energy security as the world transitions away from fossil fuels. BP is one of the first energy giants to announce it will achieve its net-zero emissions ambition by 2050.
But shareholders have shared their disappointment with some of the UK’s largest pension funds expressing deep dissatisfaction. About 17% of shareholders voted in favor of resolutions proposed by the Dutch Group Follow This. The resolution calls on BP to align its 2030 emissions reduction targets with the landmark Paris Agreement.
In addition to BP, French oil major TotalEnergies also started its first quarter earnings season in line with analyst expectations. The company reports that net income has fallen 27% from his to $6.5 billion amid falling fossil fuel prices.
Bhushan is a FinTech enthusiast and has a great knack for understanding financial markets. His interests in economics and finance focus on the emerging blockchain technology and cryptocurrency market. He is in a continuous learning process and keeps himself motivated by sharing what he has learned. In his free time, he reads thriller novels and sometimes develops his cooking skills.
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