The BP logo was displayed on August 15, 2022 at a petrol station near Warminster, Wiltshire, England.
Matt Cardy | Getty Images News | Getty Images
British Petroleum Professional bp On Tuesday, profits fell sharply in the fourth quarter, promising to “fundamentally” reset the embattled energy company’s strategy.
The energy company released a base alternative cost profit in the fourth quarter – used as a proxy for net profit – of $1.169 billion, compared with $2.99 billion a year ago, according to a poll by LSEG Poll, with analysts forecasting $1.2 billion in the fourth quarter Dollar. .
The company’s net debt was slightly above $23 billion in the fourth quarter, up 10% year-on-year. Capital expenditure (CAPEX) reached $3.7 billion between October and December, down from $4.7 billion in the fourth quarter of 2024.
CEO Murray Auchincloss said in a statement to the results that the company has been “reshaping” its portfolio and has made “strong progress” in cutting costs and plans to make further overhauls.
“We now plan to fundamentally reset our strategy and drive further improvements in performance to serve increased cash flow and returns. This will be the new direction for BP,” he said.
The trend of oil profession has been trending over the past year as crude oil prices retreated after initial support following Russia’s 2022 sanctions on the West and G7 sanctions on the Moscow barrel. In January’s transaction updateBP tagged higher company costs, lower fourth quarter achieved optimized profits and one-time fees related to its bioethanol acquisition.
BP has been broadly underperformed, with stocks down about 9% from last year to the end of last year, while 6% earnings are 6% shell. The weekend reported that activist investor Elliott Management has taken a stake in the struggling oil profession, sparking speculation that influential hedge funds could go to energy companies Apply pressure to allow energy companies to transfer their core oil and gas operations.
Otherwise, there has been long speculation on whether BP can be a takeover target – although the company’s £74 billion could pose a challenge to suitors.
BP tries to turn its fate into Major reorganization This includes leadership in Auchincloss’ efforts to provide at least $2 billion in cash by the end of 2026. Reduce 4,700 roles Last week it was revealed that this was Looking for a buyer Because of its Ruhr Oel GmbH German refinery assets. But worrying about the clarity of BP’s strategic direction in the green energy ambitions of green energy is present – the company will provide its next strategic update on February 26.
Royal Canadian Analysts stressed in Friday’s notes that the key point remains whether BP will reconcile its balance sheet by slowing its share buyback program, noting that market expects the oil specialty to now commit about 1 billion quarterly USD buybacks, and before $1.75 billion.
“Analysts noted that we expect to have an impact on the impact of BP on tariffs on Canadian crude oil on the call, as it relates to the profitability of U.S. refineries. Its revenue potential deteriorates.
