BP Earnings: Management Rolls Out Cost-Reduction Program but No Change to Strategy
BP's first-quarter earnings fell slightly short of market expectations as underlying replacement cost profit fell to $2.7 billion from $5.0 billion a year ago, while operating cash flow fell to $5.0 billion from $7.6 billion the year before. The decline in earnings was attributable to lower oil and gas prices and weaker refining margins. Trading remained a tailwind to earnings with both oil and gas trading turning in strong performances, like the year before. Production increased 2.1% to 2,378 barrels of oil equivalent per day from the year before thanks to continued strong bpx energy performance. Management still expects slightly higher volumes in 2024 compared with 2023. Our fair value estimate and moat rating are unchanged.