BP Reports $3 bn in Q4 Earnings Amid Strategy Shift

By Editor


BP has reported profit of $3 billion in Q4 2023. The company attributed this strong performance to buoyant gas trading and improved oil and gas prices, offsetting lower refining margins amidst tepid global economic conditions.

BP’s 2023 profits reached $13.8 billion.

BP CEO Murray Auchincloss, who assumed the permanent role in January after an interim tenure, in its earnings report, expressed relief at the earnings, following two consecutive quarters of missing forecasts. Murray Auchincloss stepped in after his predecessor, Bernard Looney, departed abruptly due to past personal relationship disclosures.

Murray Auchincloss reaffirmed BP’s commitment to its strategy aimed at reducing oil production by 25 percent from 2019 levels by 2030 while ramping up investments in renewables and low-carbon ventures.

However, he hinted at the possibility of surpassing the 3 percent oil output growth target set for the period between 2022 and 2027, contingent upon returns, addressing concerns among investors skeptical of the company’s transition plans, Reuters news report said.

BP anticipates greenlighting 12 to 16 oil and gas projects over the next couple of years, underscoring its continued commitment to growth amidst the evolving energy landscape. Despite recent leadership turbulence and strategic concerns, BP aims to regain market confidence through robust financial performances and clear shareholder returns.

BP’s capital expenditure for 2023 remained unchanged from the previous year at $16.3 billion, with expectations of a slight dip to $16 billion for the upcoming years.

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