BP announces its second-highest profit in ten years

BP, the energy behemoth, revealed its second-highest yearly profit in ten years, even though it was only half of what it had disclosed the year before. In 2023, profits were $13.8 billion (£11 billion), a decrease from the record $27.7 billion in 2022—a year that saw a spike in oil prices following Russia’s invasion of Ukraine. All energy companies saw a decline in profits last year as a result of the oil price decline. BP, however, announced that it was intensifying its plans to give shareholders their money back. These are BP’s first results to be made public after Murray Auchincloss was named the company’s new CEO.

 

After acknowledging that he had not been “fully transparent” about his previous personal ties at the company, former head Bernard Looney resigned in September of last year. Mr. Looney may lose up to £32.4 million in salary and perks, according to BP’s board, which declared that he had engaged in “serious misconduct”. The decline in BP’s yearly earnings is consistent with rival Shell’s recent announcement that its income dropped from $39.9 billion in 2022 to $28.2 billion last year. With the exception of 2022’s outcomes, BP’s yearly profit amount was the highest since 2012. BP reported $3 billion in profits for the last three months of 2023, exceeding expectations. By Tuesday afternoon, the company’s shares had increased by more than 5%.

 

Additionally, the business announced that it would use $1.75 billion in share buybacks to boost returns to investors in the first three months of the year. Additionally, it pledged to repurchase $3.5 billion during the first half of 2024. BP stated that while it anticipated reduced output from gas and low-carbon energy this year, it expected “underlying production from oil production and operations to be higher”. Environmental organizations criticized the firm last year after it backed out of its commitment to cut back on how much gas and oil it produces by 2030. The advocacy group Global Witness criticized BP’s actions in response to the most recent results.

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