Oil giant BP (LSE: BP) announced a fresh share buyback program worth $1.75 billion, following through on its target of $3.5 billion for the first half of 2024. This decision comes despite a decline in first-quarter profits compared to both the same period last year and the previous quarter.
BP cited lower oil and gas prices, weaker fuel margins, and a refinery outage as the reasons behind the profit decline. The company’s underlying replacement cost profit for Q1 2024 fell 45% year-on-year to $2.72 billion. Per-share profit also dropped to 16.24 US cents compared to 27.74 cents a year earlier.
The company declared an unchanged dividend of 7.27 cents per share for the first quarter and announced a new buyback program. They also aim to achieve at least $2 billion in cash cost savings by 2026 through initiatives like digital transformation and supply chain improvements.
Looking ahead, BP expects slightly lower production in the second quarter compared to Q1 2024. Despite the profit decline, the company maintains its full-year production and capital expenditure guidance. BP’s share price remained flat on Tuesday morning.
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