BP’s profit rises to $5 billion as share buyback slows

BP (BP.L) made a profit of $5 billion in the first quarter of 2023, up from the previous three months on the back of strong oil and gas trading, but the company’s shares fell as it slowed a share buyback programme.

BP’s results, which beat forecasts, follow a strong showing by rivals including Exxon Mobil (XOM.N) and Chevron last week as oil majors continue to benefit from energy prices that remain strong despite some softening since the start of the year.

BP’s shares, however, were around 4.5% lower by 0923 GMT – compared with a drop of around 1.3% for an index of European oil companies (.SXEP) – after it said it would repurchase $1.75 billion worth of shares over the next three months, down from $2.75 billion in the previous three.

First-quarter underlying replacement cost profit, the company’s definition of net income, reached $4.96 billion, up from $4.8 billion in the fourth quarter of 2022 and above expectations of $4.3 billion in a company-provided survey of analysts.

The profit reflects “an exceptional gas marketing and trading result, a lower level of refinery turnaround activity and a very strong oil trading result”, BP said, noting the partial offset from lower oil and gas prices and refining margins.

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