BP Plc (BP)

[abrooklyn]

BP Beats Expectations With $5 Billion Profit After Fending Off Shareholder Challenge

British oil major BP beat expectations in the first quarter on strong results from trading oil and gas, and said Tuesday that it will buy back a further $1.75 billion in shares.

BP's first-quarter underlying replacement-cost profit--a metric similar to net income that U.S. oil companies report--of $4.96 billion exceeded the $4.27 billion average forecast by 25 analysts in a survey compiled by the company. It compared with $6.25 billion a year prior.

The result followed a record-high full-year profit in 2022, and a move by BP in February to scale back earlier targets for reducing its oil-and-gas production.

That 2022 profit of $27.7 billion--by the same underlying replacement-cost measure--and BP's plans to increase spending on oil-and-gas production had made the company a target of some shareholders, including U.K. pension funds, who were angry about its slower-than-planned shift away from fossil fuels.