Energy giant bp has revealed lower-than-expected profits in the face of lower oil prices.
BP said that underlying replacement cost profit – its preferred measure – was 2.7 billion US dollars (£2.2 billion) in the first quarter, down from 4.9 billion dollars (£3.9 billion) a year earlier.
The London-listed company also revealed plans to deliver two billion dollars (£1.6 billion) extra in cost savings by 2026.
BP chief executive officer Murray Auchincloss said the firm delivered “another resilient quarter financially” and said the company continued to make progress on its strategy.
“We are simplifying and reducing complexity across BP and plan to deliver at least $2 billion of cash cost savings by the end of 2026 through high grading our portfolio, digital transformation, supply chain efficiencies and global capability hubs,” he said.
Mr Auchincloss said oil production at BP was up and the company’s ACE platform in the Caspian Sea is now producing.
Reported production for the quarter was 1,463 million barrels of oil equivalent per day, 7.6% higher than the first quarter of 2023.
RBC Brewin Dolphin investment manager Stuart Lamont said as with Shell last week, BP investors were looking for “reassurance” on production volumes and capital discipline.
“However, BP has missed profit expectations on the back of lower gas prices, weaker margins, and operational outages,” he said.
“The extension to the share buyback programme and maintained dividend will, nevertheless, provide shareholders with some solace, both of which suggest BP’s management team sees this as a temporary setback and remains relatively optimistic about the near-term outlook.”
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