The BP plc (NYSE: BP) stock price fell 5.15% after releasing its first quarter 2023 results, where it made an underlying replacement cost (net) profit of $5.0 billion compared to a net profit of $4.8 billion in Q4 2022. The figure declined from the $6.2 billion profit earned in Q1 2022.
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BP stock fell as investors reacted negatively to the lower share buyback program of $1.75 billion the British oil giant announced. Many were expecting a higher share buyback figure, which explains the decline in BP’s share price today. The company’s profits were affected by the lower oil prices in Q1 2023 compared to Q1 2022.
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In addition, the British oil major revealed that it had reduced its net debt to $21.2 billion after generating $7.6 billion in operating cash flow. The cash generated by its operations also allowed the oil firm to build up its working capital position, making it less likely to take on more loans to fund its operations.
BP is also progressing in transitioning into an integrated energy company by agreeing to acquire TravelCenters of America, one of the most extensive networks of highway travel centres in the US, as part of its convenience and mobility strategy.
The oil giant has also signed an agreement to take a 40% stake in the Viking carbon capture and storage (CCS) project in the North Sea, which is part of its low-carbon energy strategy. The UK government has chosen three bp-led hydrogen and CCS projects to progress to the next development stage.
Finally, BP recently announced the safe delivery of its Mad Dog Phase 2 project in the Gulf of Mexico.
Bernard Looney, BP’s CEO, said: “This has been a quarter of strong performance and strategic delivery as we continue to focus on safe and reliable operations. Momentum continues to build across our integrated energy company strategy, with the start-up of Mad Dog Phase 2, our agreement to acquire TravelCenters of America and progress towards hydrogen and CCS projects in the UK. And importantly, we continue to deliver for shareholders through disciplined investment, lowering net debt and growing distributions.”
*This is not investment advice.
BP stock price.
The BP stock price fell 5.15% to trade at $37.95, from Monday’s closing price of $40.01.
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