From CNBC:

Shares of BP rose 5% after the oil giant accelerated the pace of its buybacks and increased its dividend despite a drop in annual profit. BP announced a $1.75 billion share buyback prior to reporting first-quarter results and a $3.5 billion buyback for the first half of the year. The company declared a 10% dividend increase.

For full-year 2023, BP recorded an underlying replacement cost profit of $13.8 billion, lower than the previous year’s $27.7 billion. However, the fourth-quarter net profit of nearly $3 billion surpassed analyst expectations. The London-listed stock of BP soared after its announcement of share buybacks, exceeding market expectations.

BP’s plan to execute share buybacks of at least $14 billion through 2025, along with specific EBITDA targets, was viewed positively by the market. Analysts noted that the commitment to shareholder returns showed confidence in future delivery. Oil investors responded favorably to these developments.

BP’s fourth-quarter results reflected strong gas trading and “significantly lower” industry refining margins. The company also highlighted strong operational performance throughout 2023 and expressed optimism about long-term shareholder value. In contrast, British rival Shell reported stronger-than-anticipated full-year profits with a dividend increase and a $3.5 billion share buyback program.

Despite positive quarterly earnings for Exxon Mobil and Chevron, both saw a sharp decline compared to the previous year due to weaker fossil fuel prices. BP faced pressure from an activist investor urging the company to increase its oil and gas investments while reducing spending on clean energy. The investor expressed frustration with BP’s share price performance and called for a rational allocation of capital.

The leadership change at BP, including the appointment of a new CEO, occurred amid controversy surrounding the scaling back of the company’s climate plans. Former CEO Bernard Looney had introduced ambitious emissions reduction targets, but the company later watered down these plans, citing the need to invest in oil and gas to meet demand.



Read more: BP accelerates pace of share buybacks even as full-year profit misses