BP beats Q4 profit forecast, increases share buybacks
BP reported on Tuesday (Feb 6) fourth-quarter earnings of US$3 billion, exceeding forecasts thanks to strong gas trading, as the energy company increased the pace of its share repurchases.
The quarterly results lifted the energy giant’s 2023 profit to US$13.8 billion, a 50 per cent drop from a year earlier as oil and gas prices cooled and refining profit margins weakened.
The strong quarterly profit will come as a relief to CEO Murray Auchincloss after the company had substantially missed forecasts in the previous two quarters.
BP maintained its dividend at 7.27 US cents per share and increased the rate of its share buyback programme to US$1.75 billion over the next three months from US$1.5 billion in the previous three months.
The company said it was committed to repurchasing US$3.5 billion of shares in the first half of 2024.
BP’s fourth-quarter underlying replacement cost profit, the company’s definition of net income, reached US$2.99 billion, exceeding forecasts of US$2.77 billion in a company-provided survey of analysts.
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That compared with a US$3.3 billion profit in the third quarter and US$4.8 billion a year earlier.
BP said the quarterly results reflected strong gas trading results and higher oil and gas prices which were nevertheless offset by “significantly lower” refining margins, weak oil trading and exploration impairments.
Rivals ExxonMobil, Chevron and Shell last week beat profit expectations on the back of a mix of strong trading results and higher oil and gas production while refining margins weighed on the sector amid sluggish global economic activity. REUTERS
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