net profit down sharply year-on-year in the first quarter

oil priceoil priceLondon: British oil giant BP recorded a sharp drop in profit in the first quarter due to falling gas prices which weighed on sales, and an unfavorable comparison effect.

The group’s share of net profit fell by 72% over one year to 2.3 billion dollars (around 2 billion in Swiss francs at today’s rate), for a turnover which fell by 13% over one year to 50 billion dollars, according to a press release on Tuesday.

Profit underlying replacement costs, a measure excluding exceptional items which is most closely scrutinized by the markets, is down by almost half to $2.7 billion.

Oil prices, which have declined since the 2022 peaks, rebounded after October 7 due to geopolitical risks with the war between Israel and Hamas.

Gas prices, on the other hand, have plunged since their records at the start of the war in Ukraine, resulting in an unfavorable comparison effect with the same period in 2023 even if BP describes its sales for the quarter under review as “solid“.

We delivered another financially resilient quarter and continue to make progress on our strategy” commented general manager Murray Auchincloss.

We are simplifying and reducing complexity across BP and plan to generate at least $2 billion in savings by the end of 2026 through portfolio assessments, digital transformations, supply chain efficiencies“, among others, he adds, quoted in the press release.

The group announces a new share buyback program of $1.75 billion for the next three months as well as an increase in its debt due to investments.

Last week, Shell also published a net profit down by 15.5% to $7.4 billion in the first quarter for a turnover that suffered a decrease of the same magnitude, but these better than expected figures were well received by the market.

(c) AFP

Comment BP: net profit down sharply year-on-year in the first quarter

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