London-based bp reported a dip in its first quarter profits after raking in big bucks in 2022 because of the Russia-Ukraine war. Bp said it earned US$8.2 billion in Q1 profits, down from US$10.8 billion in the last quarter.
Its earnings fell 13% to US$1.66 per share in Q1 as revenue grew 14% to US$56.18 billion. The company predicted oil prices should be “elevated in the second quarter as the recent decision by OPEC+ to restrict production, combined with strengthening Chinese demand, tightens supply/demand balances.”
The company’s operating cash flow dropped 7% to US$7.62 billion. Additionally, its surplus cash flow decreased 43% to US$2.28 billion in Q1. bp repurchased US$2.45 billion in shares in the first quarter, up from US$1.6 billion a year ago but down sequentially from $3.24 billion in Q4.
It also plans for reported and underlying upstream production in Q2 to be broadly flat compared with 2022.
“This has been a quarter of strong performance and strategic delivery as we continue to focus on safe and reliable operations,” said Bernard Looney, bp’s Chief Executive Officer (CEO). “Momentum continues to build across our integrated energy company strategy, with the start-up of Mad Dog Phase 2, our agreement to acquire TravelCenters of America and progress towards hydrogen and CCS projects in the UK. And importantly we continue to deliver for shareholders, through disciplined investment, lowering net debt and growing distributions.”
Bp is facing backlash from shareholders for rolling back on its oil and gas production cut. A vote is due against Looney soon. The company still remains laser focused on its energy transition. It said it intends to increase its investment in oil and gas and in its “transition growth engines” – bioenergy, hydrogen, renewables, electric vehicle charging and convenience.
Both areas will see an additional investment of US$8 billion of capital through 2030.
