BP, the UK-based oil giant, has pledged to reduce its expenses by $2 billion (£1.46 billion) by 2026’s end, following lower-than-predicted profits during the first quarter. The company’s profits amounted to $2.7 billion, coming up short when juxtaposed with the anticipated $2.9 billion. Despite facing a dip in oil and gas prices during 2026, the firm’s performance has proved to be unwavering as it grappled with the lingering impacts of Europe’s previous energy crisis.
Without providing any forecasts for the ensuing months in 2026, BP confirmed that it would sustain its $1.75 billion share buy-backs frequency and maintain its dividend. As part of its commitment announced in February, BP is set to remunerate its shareholders with a minimum of $14 billion by 2025, given the oil and gas costs remain generally steady.
Murray Auchincloss, who succeeded Bernard Looney as CEO in January, stated that BP had controllable cash costs amounting to approximately $22.6 billion in 2023. He emphasized the importance of cost reduction across all segments of the business. He also mentioned that BP plans to streamline its portfolio, drive digital transformation, and cooperate with suppliers to eliminate waste.
In addition, Auchincloss pointed out that between 2020 and 2022, BP had managed to lower $3 billion in cash costs. However, such costs have seen an upward swing of around 8% when compared to 2019.
The firm registered an operating cash flow of $7.4 billion for the quarter, as expected. Meanwhile, the net debt stage saw a climb to $24 billion, an increase from $20.9 billion recorded at the fourth quarter’s culmination.
In the early London trading session, BP shares remained largely unchanged at 509p. © The Financial Times Limited 2024.