ADVERTISEMENTOil and gas giant BP announced weaker first quarter 2025 results on Tuesday, as its gas trading and refining divisions lagged.
Underlying replacement cost profit was at $1.4 billion (€1.2bn) in the first three months of the year, down from $2.7bn (€2.4bn) in the corresponding quarter last year.
Similarly, operating cash flow was reported at $2.8bn (€2.5bn) in the first quarter of 2025, down from $5bn (€4.4bn) in the corresponding time period last year. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came to $8. (€7.6bn) in Q1 2025, down from $10.3bn (€9bn) in the same quarter last year.
The company also announced a share buyback of $750 million (€658.4m), before it announces its second quarter results.
“In February, we announced a fundamental reset of our strategy – to grow the upstream, focus the downstream and invest with discipline in the transition – and we have already made significant progress,” Murray Auchincloss, chief executive officer (CEO) of BP, said.
He added: “So far this year we have started up three major projects, made six exploration discoveries and have progressed our divestment programme – all while delivering strong operational performance, with over 95% upstream plant reliability supporting the best operating efficiency* on record, and over 96% refining availability.”
Auchincloss also reassured investors that BP would continue to assess changes and market volatility, while focusing on increasing long-term shareholder value by enhancing cash flow, slashing costs, and strengthening the balance sheet.
BP continues to struggle despite reversing energy transition strategy
Russ Mould, investment director at AJ Bell, said: “Auchincloss and his team seem to be struggling to keep anybody happy after the abandonment of the firm’s energy transition strategy amid pressure from activist shareholder Elliott and the unveiling of a new strategic direction in February.”
He added: “Management doesn’t appear to be going far enough and fast enough for the activist’s liking while other institutions have reservations about the shift in direction and how it has been handled. Some investors have just been underwhelmed.”
BP also announced that the head of strategy, Giulia Chierchia, would be leaving in June. The company does not plan to replace her.
Regarding this move, Mould said: “The departure of Giulia Chierchia – the head of strategy who helped oversee the push into clean energy – suggests that the new hydrocarbons-first approach is here to stay. Another key architect of the green strategy, chair Helge Lund, is already on his way out of the door, although not fast enough in the eyes of some.”
BP’s decision to reverse its energy transition strategy in favour of fossil fuels could have far-reaching consequences for the wider UK economy as well, according to Charlie Kronick, senior climate advisor for Greenpeace UK.
He said: ““BP’s pivot back to fossil fuels chasing profits is not paying off, and the biggest loser isn’t just BP, it’s those of us dealing with the climate fallout of flooded homes, firefighters tackling wildfires, and ultimately the UK economy taking a hit from climate damages.
“Energy security can’t be separated from climate security. Fossil fuel companies like BP must be held accountable by the government for costly weather chaos.”
