BP (BP.L) made $5 billion in the first quarter of 2023, up from the previous three months, due to robust oil and gas trade and a reduced share repurchase program.
BP’s earnings, which topped expectations, follow solid results from competitors like Exxon Mobil (XOM.N) and Chevron last week as oil prices remain robust despite some easing since the start of the year.
BP reported a first-quarter underlying replacement cost profit of $4.96 billion, up from $4.8 billion in the fourth quarter of 2022 and beyond analysts’ projections of $4.3 billion.
It fell from $6.25 billion in the first quarter of 2022.
“An exceptional gas marketing and trading result, a lower level of refinery turnaround activity and a very strong oil trading result” offset lower oil and gas prices and refining profits, BP said.
Over the next three months, the company will repurchase $1.75 billion more shares, exceeding its 60% surplus cash goal. However, the previous three months’ $2.75 billion purchase was higher.
BP’s share price fell 4% to 513.3 pence in early trade, while the European oil firms (.SXEP) index fell 1%.
After a 10% increase in February, its dividend was 6.61 cents. After the pandemic, BP halved its payout.
The London-based corporation anticipates oil and European gas prices to remain robust in the second quarter despite lower diesel prices lowering refining profit margins.
BP shares are risen 10% this year, outperforming Exxon’s 6% and Shell’s 3%.
Brent crude oil prices averaged $81 per barrel in the first quarter, down 16% from a year earlier and 7% from the fourth quarter.
Energy prices and market volatility boosted BP’s trading division to $28 billion in 2022.
After buying $11.7 billion in 2022, the business indicated it would buy back $2.75 billion in February over three months.
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