BP, which in 2020 set out its ambition to become a net zero company “by 2050 or sooner,” has drawn sharp criticism for scaling back its emission reduction targets in the wake of record profits.
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LONDON — Oil major BP on Tuesday reported stronger-than-expected first-quarter profits, rising from the previous three months but down from the exceptional levels it recorded through a blockbuster 2022 when fossil fuel prices surged following Russia’s full-scale invasion of Ukraine.
The British energy giant posted underlying replacement cost profit, used as a proxy for net profit, of $4.96 billion for the first quarter as lower oil and gas prices took a toll.
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That compared with a profit of $4.8 billion in the fourth quarter and $6.2 billion for the first quarter of 2022. Analysts had expected BP to report first-quarter profit of $4.3 billion, according to Refinitiv.
BP announced a further share buyback of $1.75 billion, which it expects to complete prior to announcing its second-quarter 2023 results in early August. The group said it completed its previously announced $2.75 billion share buyback on April 28.
“This has been a quarter of strong performance and strategic delivery as we continue to focus on safe and reliable operations,” BP CEO Bernard Looney said in a statement.
“And importantly we continue to deliver for shareholders, through disciplined investment, lowering net debt and growing distributions,” he added.
BP said it expects to be able to deliver share buybacks of around $4 billion per year — which is at the lower end of its $14 billion to $18 billion capital expenditure range — and has the capacity for an annual increase in the dividend per ordinary share of roughly 4%.
BP’s dividend remained unchanged from the previous quarter at 6.61 cents per ordinary share, following a 10% increase in February.
The company reported first-quarter net debt of $21.2 billion, down from $27.5 billion when…
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