BP Faces Profit Decline and Adjusts Strategies Amid Tariff Pressures

Published 2 hours agoBP

BP Faces Profit Decline and Adjusts Strategies Amid Tariff Pressures

BP has announced a decline in profit and adjustments to its share buyback plans as it navigates strategic challenges influenced by U.S. tariffs. The energy giant reported an underlying replacement cost profit of $1.38 billion for the first quarter of 2025, falling short of analyst expectations of $1.53 billion and significantly lower than the $2.7 billion reported in the same period last year, as noted by Reuters.

Accompanying the profit shortfall, BP has modified its approach to share buybacks. The company completed a $750 million buyback and plans another $750 million in the current quarter, scaling back from its previous buyback intentions. Additionally, the company has reduced its planned capital expenditure for the year to $14.5 billion, down by approximately $500 million from prior guidance. This move is part of a broader effort to address financial headwinds.

Amidst these financial adjustments, CEO Murray Auchincloss revealed a major restructuring focus designed to bolster cash flow and returns. This includes optimizing the oil and gas segments and halting less competitive projects. Pressure from activist investor Elliott Investment Management, which holds over a 5% stake, is further influencing BP's strategic decisions. These shifts are partly a response to challenges posed by U.S. tariffs, which have affected profitability, according to the Financial Times.

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BP Faces Profit Decline and Adjusts Strategies Amid Tariff Pressures

BP Faces Profit Decline and Adjusts Strategies Amid Tariff Pressures

BP has announced a decline in profit and adjustments to its share buyback plans as it navigates strategic challenges influenced by U.S. tariffs. The energy giant reported an underlying replacement cost profit of $1.38 billion for the first quarter of 2025, falling short of analyst expectations of $1.53 billion and significantly lower than the $2.7 billion reported in the same period last year, as noted by Reuters. Accompanying the profit shortfall, BP has modified its approach to share buybacks. The company completed a $750 million buyback and plans another $750 million in the current quarter, scaling back from its previous buyback intentions. Additionally, the company has reduced its planned capital expenditure for the year to $14.5 billion, down by approximately $500 million from prior guidance. This move is part of a broader effort to address financial headwinds. Amidst these financial adjustments, CEO Murray Auchincloss revealed a major restructuring focus designed to bolster cash flow and returns. This includes optimizing the oil and gas segments and halting less competitive projects. Pressure from activist investor Elliott Investment Management, which holds over a 5% stake, is further influencing BP's strategic decisions. These shifts are partly a response to challenges posed by U.S. tariffs, which have affected profitability, according to the Financial Times.

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