BP announced a reduction in first-quarter earnings due to lower commodity prices

BP announced higher-than-expected first-quarter earnings on Tuesday, up from the previous three months but down from the remarkable levels it achieved during a spectacular 2022, when fossil fuel prices skyrocketed following Russia's full-scale invasion of Ukraine.

For the first quarter, the British energy giant earned $4.96 billion in underlying replacement cost profit, which is used as a proxy for net profit.

This compares to a $4.8 billion profit in quarter four and a $6.2 billion profit in quarter one of 2022. According to Refinitiv, analysts projected BP to earn $4.3 billion in the first quarter.

BP's quarter one results reflected healthy oil and gas trade, according to the company. It announced another $1.75 billion share buyback, which it plans to accomplish before reporting its second-quarter 2023 results in early August. On April 28, the company stated that it has completed its previously planned $2.75 billion share buyback.

"This has been a quarter of strong performance and strategic delivery as we continue to focus on safe and reliable operations," said BP CEO Bernard Looney.

BP stated that it intends to be able to provide share buybacks of about $4 billion per year, which is at the lower end of its capital expenditure range of $14 billion to $18 billion, and that it has the potential for a 4% yearly rise in the dividend per ordinary share.

After a 10% increase in February, BP's dividend was still unaltered from the prior month at 6.61 cents per ordinary share.

The corporation reported first-quarter net debt of $21.2 billion, down from $27.5 billion a year ago.

The first-quarter figures follow a year of huge profits for Big Oil. Over a period of fluctuating oil and gas prices, energy companies broken previous annual records in 2022.

BP, on its part, reported yearly earnings of $27.7 billion last year, more than tripling profits in 2021. The oil giant's previous yearly profit record was $26.3 billion in 2008.

(CNBC.com, investing.com)