From CNBC: 2025-02-11 02:24:39

British oil major BP announced a sharp drop in fourth-quarter profit, reaching $1.169 billion compared to $2.99 billion last year and an expected $1.2 billion. Net debt increased to nearly $23 billion, with capex at $3.7 billion. CEO Auchincloss plans to reset strategy to improve performance and cash flow.

BP underperformed peers, falling 9% in the past year. Activist investor Elliott Management’s stake in BP may influence the company to shift focus. Speculation about BP being a takeover target persists due to its £74 billion size. Major restructuring efforts include job cuts and cost savings of $2 billion by 2026.

RBC analysts question whether BP will slow down its share repurchase program to improve its balance sheet. Concerns over US tariffs on Canadian crude and poor capital allocation affecting profitability of US refineries remain. BP’s strategic direction and green energy ambitions will be updated on Feb. 26.



Read more at CNBC:: BP earnings Q4 2024