British oil Major BP Reports Sharp Drop In Fourth-Quarter Profit, Vows Strategy Reset

British Oil Major Bp On tuesday posted a sharp drop in fourth -Quarter Profit on Weaker Refining Margins, Announcing a $ 1.75 billion share boyback and a pledge to “Fundamentally” RSET Its Strategy Strategy.

The energy firm Posted Underling Replacement Cost Profit (RC Profit) – Used as a Proxy for Net Profit – At $ 1.169 billion in the fourth Quarter, Compared with $ 2.99 Billion in the Sam 2.99 billion Year and with annalyst forecast of $ 1.2 billion, according to a lseg poll.

The company attributed its Quarterly 48% Drop in RC Profit to “Weaker Realized Refining Margins, Higher Impact from Turnaraound Activity, Seasonal Lower Customers Volumes and Fuels MARGINS and Fuels MARGINS and Higher Other Businesses & Corporate Underling Charge. “

BP’s Net Debt Hit Shy of $ 23 Billion in the fourth Quarter, Increasing 10% Year-On-Yaar. Capital Expenditure (Capex) Hit $ 3.7 Billion in the October-Decmber Period, a Steep Drop From The $ 4.7 Billion of Fourth Quarter 2024.

Despite this, The Embattled Energy Company Launched a $ 1.75 billion share Buyback for the fourth Quarter, with a dividend per order of 0.08. Analysts Had Previously Questioned WHETHER BP BLD Slow Down Its Share Repurchasses to Reconcile Its Balance Sheet.

“Bp has guided to buybacks of $ 1.75bn to 1q results, although no guidance is given beyond this. Whether the Reduction in Buyback BE Given with the CMD or Results.

In Its Business Breakdown, BP Noted A 15% Year-On-Year Drop in the RC Profit Performance of Its Gas & Low Carbon Energy to $ 1.84 billion, despite a Sharma Quarter.Oil Production and Operations Jumped 37% on Annual Basis, While The Company Flagged An Overall “Weak” Contribution from its Oil Trading Division Following Weaker Refining Margins.

In its first-Quarter Guidance, BP Projects Lower Year-Once-Year Upstream Production, Given Previously Announced Divestments in Egypt and Trinidad, Along Low Realized Refining Margings and Foel Margins Sensitivity to Cost of Supply and Earnings Delivery, as well as the strength of the us dollar – the currency that widely denominates commodities.

BP Shares We Little Changed Folling The Results, Down Just 0.13% at 08:40 AM London Time.

In a statement accountilation the results, CEO Murray Auchincloss said the company has been “respahening” its portfolio with a “Strong Progress” in Cutting Costs and A Planned furdheul ahead.

“We Now Plan to Fundamentally Reset Our Strategy and Drive Further Improvements in Performance, All in Service of Growing Cash Flow and Returns. It will be a new direction for bp.

Oil Majors have weeded a turn in tide over the past year, as CRUDE PRICES RETREAD AFTER Initial Support Folling Following Russia’s 2022 Invurse of Ukraine and Western and G7 SANCTINS AGANCTIONS AGIINST MOSCOW ‘ In a January trading updateBP Flagged Higher Corporate Costs, Lower Fourth-Quarter Realized Refining Margins and One-offf Charges Linked To Its Bio-Ethnol Acquisition.

BP has broadly underperformed its peers, with shares Falling Roughly 9% over the last year to the end of last week – Compared with 6% Gains for 6% Gains for ShellThe stock Gained Ground on Monday, Following Weekend Reports that Activist Investor Elliot Management has built a stake in the strugg in the struggling oil major, fueling speculation Pressure the energy company to shift gears on its core oil and gas businesses.

Speculation has otherwise long mounted over where bp would become a takeover target-Thought the company’s £ 74-billion size clock poses a class for suitors.

Bp has sought to turn its fortunes through a major restructuring That included a downsize in Leadership AMID AUCHINCLOSS ‘efforts to Deliver at Least $ 2 Billion of Cash Saveings by the End of 2026. to cut 4,700 of roles And last week revised it is seeking boyers For its ruhr oel gmbh German refinery assets. But Concerns Linger Over the Clarity of BP’s Strategic Direction Amid Its Sprawling Green Energy Ambitions – With the company due to supply its next strategic update on feb. 26.