BP reports lower-than-expected profit of US$1.4b

[LONDON] BP missed forecasts on Tuesday (Apr 29) with an underlying replacement cost profit of US$1.38 billion for the first quarter, below the US$1.53 billion expected by analysts in a company-provided poll.

BP bought back US$750 million in shares, at the low end of its guided range, and announced plans to purchase a further US$750 million worth this quarter.

It said it would spend US$14.5 billion this year, around US$500 million less than its previous guidance, and reiterated its US$13-US$15 billion target for next year and 2027.

Activist investor Elliott wants BP to boost its free cash flow through significant spending cuts and cost reductions, replace its strategy chief and create upstream and downstream units to clarify accountability, sources familiar with the matter have told Reuters.

Elliott has increased its stake in BP to just over 5 per cent, placing it between top shareholders BlackRock and Vanguard, LSEG data shows.

In the first quarter last year, BP reported underlying replacement cost profit – its definition of adjusted net income – of US$2.7 billion. REUTERS