BP Reports Lower Profit, Buys $1.75 Billion in Shares, and Announces 'Fundamental Reset'
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World
February 11, 2025 09:48
amsterdam - Oil and gas giant BP reports significantly lower profit, CEO announces cost-saving 'fundamental reset', buys own shares worth $1.75 billion.
BP Reports Lower Profit and Implements Cost-saving Measures
BP announces a 'fundamental reset' after reporting a significantly lower profit in the fourth quarter. The company bought $1.75 billion in its own shares to enhance shareholder value.
CEO Murray Auchincloss vows to save $3 billion following criticism from activist shareholder Elliott. The company attributes the profit decline to lower fuel margins and higher costs, with downstream operations reporting a $302 million loss.
Despite job cuts in its Netherlands refinery, BP fell short of market expectations with a reduced earnings per share. The company plans to divest its largest refinery in Gelsenkirchen, Germany, in response to ongoing revenue declines in the refining sector.
Auchincloss promises a 'fundamental reset' for BP, signaling a new direction for the company. The move comes amid pressure from investors, including Elliott Capital, seeking a higher return on investment.
BP's debt decreases to $23 billion, down from $24.3 billion, a positive development for the company. Auchincloss references President Trump's 'Gulf of America' for BP's oil assets in the region, aligning with industry trends.