FX.co ★ BP Plc Q1 RC Profit Plunges On Weak Sales; Backs FY24 Production View

BP Plc, a leading British energy company, reported on Tuesday that its replacement cost (RC) profit for the first quarter fell dramatically to $1.61 billion, compared to $8.67 billion from the same period last year.

The company's underlying RC profit for the first quarter was $2.72 billion, a significant drop from the $4.96 billion reported in the same quarter in 2023. Similarly, the underlying RC profit per ordinary share decreased to 16.24 US cents from 27.74 US cents from the same period a year ago. The underlying RC profit per ADS (American Depositary Share) was reported to be $0.97, another decrease compared to $1.66 last year.

Analysts' average earnings prediction for the company was $0.98 per share according to Thomson Reuters, generally excluding special items from these estimates.

BP shareholders experienced a profit of $2.26 billion in the first quarter, compared to $8.22 billion in the same quarter last year. Earnings per ADS dropped as well, coming in at $0.80, which is significantly lower than the $2.70 reported last year.

The company's adjusted EBITDA (Earnings before interest, tax, depreciation, and amortization) also declined, falling to $10.31 billion from $13.07 billion last year. In terms of sales and other operating revenue, BP reported $48.88 billion, which is lower than the previous year's $56.18 billion. The figure was also below market expectations of $55.08 billion for the quarter.

Looking ahead, BP anticipates a slightly lower reported upstream production for the second quarter. Nonetheless, for the entirety of fiscal 2024, the company expects both reported and underlying upstream production to be marginally higher compared to that of 2023.