In a dynamic quarter marked by resilient financial performance and strategic maneuvers, global energy giant bp has unveiled its first-quarter 2024 results, showcasing adjusted EBITDA of $10.3 billion and underlying replacement cost (RC) profit of $2.7 billion.
Despite challenges in the operating environment, bp’s upstream production saw a commendable growth of 2.1% compared to the same period last year, buoyed by the successful start-up of the new Azeri Central East (ACE) platform in the Caspian Sea.
The company’s commitment to rewarding shareholders remained steadfast, with a $1.75 billion share buyback announced as part of a $3.5 billion commitment for the first half of 2024. Additionally, shareholders can anticipate a dividend per ordinary share of 7.270 cents.
Underpinning these financial achievements is bp’s laser focus on delivering its six strategic priorities. An announcement to simplify the organizational structure underscores the company’s drive for efficiency, with a target to achieve at least $2 billion of cash cost savings by the end of 2026.
Segment-wise, bp’s Gas & Low Carbon Energy division reported an RC profit before interest and tax of $1.0 billion, while Oil Production & Operations registered a robust RC profit before interest and tax of $3.1 billion. Furthermore, the Customers & Products segment turned around its performance from the previous quarter, reporting an RC profit before interest and tax of $1.0 billion.
Looking ahead, bp remains committed to delivering efficiencies, with a target to achieve $2 billion in cash cost savings by 2026. The company also reaffirmed its commitment to maintaining a resilient dividend and a strong investment-grade credit rating, signaling confidence in its financial stability amidst industry challenges.
With a strategic focus on disciplined investment and returns, bp anticipates capital expenditure of around $16 billion per annum for 2024 and 2025, as it navigates through the evolving energy landscape.
As bp continues to navigate market dynamics and execute its strategic vision, shareholders and industry stakeholders alike remain eager to witness the company’s resilience and adaptability in the face of change.
