Proactive Investors - BP plc (LON:BP) reported a profit of $2.3 billion in the first quarter, a significant decrease from $8.2 billion in the same period last year.
The less-favourable comparison reflects exceptionally strong gas marketing and trading results in the first quarter of 2023, weaker fuel margins, and lower production at 914 million barrels of oil equivalent- 5.7% lower year on year.
BP’s chief executive Murray Auchincloss said the oil major is seeking $2 billion in cash cost savings by the end of 2026 “ through high grading our portfolio, digital transformation, supply chain efficiencies and global capability hubs”.
Shareholder returns remained strong though. The dividend per share was announced at 7.27 cents, up from 6.61 cents in the first quarter of 2023. BP also announced a $1.75 billion share buyback.
Looking ahead, BP expects upstream production to be “slightly lower” in the second quarter, though both reported and underlying upstream production for the full year should be “slightly higher compared with 2023”.
Stocks to chalk up another record
The FTSE 100 is expected to breach 8,300 for the first time in history when markets open today.
This follows a killer week which saw the blue-chip index close Friday at a record 8,248.
Shifting expectations of near-term rate cuts both in the UK and across the Atlantic fuelled much of the market optimism.
Lacklustre UK consumption data released this morning could fuel even greater hopes of an interest rate cut sooner rather than later.
Retail sales in the UK dropped 4.4% on a like-for-like basis in April 2024 from a year ago, defying expectations for a 1.6% growth.
Meanwhile the Halifax House Price Index grew 0.1% from a month ago. While marking a solid turnaround from March’s 0.9% drop, it still fell slightly short of expectations of a 0.2% rise.
Footise futures have stocks opening at 8,302.