BP announces a decline in profits if the energy giant confirms the production of fossil fuel to focus on
British BP announced net profit on Tuesday in the first quarter because the energy giant in trouble will pass an important major overhaul for his fossil fuel business.
Profit after the tax decreased to $ 687 million, which is $ 2.3 billion in the first three months of 2024, driven by weaker gas sales and lower refining margins, BP said in a statement.
Total income fell four percent to just under $ 48 billion.
BP and other main oil companies have been hit by a recent decline in crude oil prices that US President Donald Trump's tariffs can cause recession, affecting demand.
“We continue to monitor the volatility and changes in Turu and still focus on moving at the pace,” said CEO Murray Auchincloss in the income statement.
Under the pressure of investors, BP is in the middle of a significant reset that saw that it plots the leading carbon reduction goals in the industry to focus on fossil fuel production more profitable.
However, according to analysts, the recent retreat of oil prices has questioned it.
BP also announced that Giulia Chierchia, the head of a sustainability strategy, will resign in June and will not be replaced.
Auchincloss said he remains “confident” in the reset, adding that BP has “already a significant success”.
The new strategy involves reducing cleaner energy investments by more than $ 5 billion a year to the frustration of environmentalists.
The company's shares fell over four percent in the early deals of London's FTSE 100 index, which was generally trading.
On Tuesday, the company reduced its quarterly repurchase to $ 750 million, which is lower expectations.
The pressure of the investor
The overhaul of the strategy followed BP's complex trading year under the pressure of investors to increase the stock price as countries want to slash emissions.
Last week, the company confirmed that the US activist investment fund Elliott Investment Management has taken just over five percent in BP.
According to analysts, the Foundation is a well -known company through changes in the groups where it is investing.
BP in early April said Helge Lund, who took on the role in 2019, leaves the company the following year.
“Geopolitics and trade tensions are more complex nowadays than a long time. This uncertainty has influenced BP,” Lund told shareholders at the General Meeting of the Company in April.
A Norwegian citizen worked with three BP CEOs, which included helping the company through turbulent sharks years when the energy requirement collapsed.
“BP is doing the best of a sticky situation,” said Derren Nathan, Head of Studies at Hargreaves Lansdown.
The group will increase its global research program, where about 40 wells have been planned over the next three years, including 15 drilled this year.
He recently announced that he made a new oil discovery from the Gulf of the US.
“But going to the weaker oil prices in the second quarter means that management is greater than ever to meet the expectations of its greatest shareholder,” Nathan added.
This story was originally reflected on Fortune.com
