Energy
Tuesday, February 6th, 2024 6:33 pm EDT
Key Points
- BP shares surged over 5% following accelerated buybacks and increased dividends despite a drop in annual profit.
- The company announced a $1.75 billion share buyback before first-quarter results and committed to a $3.5 billion share repurchase for the first half of the year.
- BP declared a 10% increase in dividend per ordinary share for the final three months of 2023, despite underlying replacement cost profit for 2023 falling significantly from the previous year.
BP shares surged over 5% following the oil company’s announcement of accelerated buybacks and increased dividends, despite a decline in annual profit. The company revealed plans for a $1.75 billion share buyback before its first-quarter results and committed to a $3.5 billion share repurchase for the first half of the year. Additionally, BP announced a 10% rise in dividend per ordinary share for the final quarter of 2023. Despite a significant drop in underlying replacement cost profit for 2023 compared to the previous year, BP’s fourth-quarter net profit exceeded analyst expectations. Analysts at RBC Capital Markets considered BP’s extended commitment to share buybacks beyond the first quarter of 2024 as a positive surprise and noted the company’s confidence in future performance. Noah Brenner of Energy Intelligence highlighted oil investors’ positive response to BP’s shareholder returns. BP’s CEO, Murray Auchincloss, expressed confidence in the company’s strategy and commitment to long-term shareholder value. The results follow pressure from activist investor Bluebell Capital Partners to revise BP’s strategy, urging increased oil and gas investments over spending on clean energy. BP has faced leadership changes and adjustments to its climate plans, emphasizing the need to balance emissions reduction with continued investment in oil and gas to meet demand.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/06/bp-earnings-q4-and-fy-2023.html
