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BP launches new share buyback despite falling profits

by SuperiorInvest

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BP has announced more share buybacks after reporting underlying profits of $13.8 billion last year.

Although they halved from the record $27.7 billion set in 2022, when profits were boosted by high fossil fuel prices, BP’s profits in 2023 were the second highest since 2012.

BP posted underlying profits of $3 billion in the final three months of the year, beating analysts’ average estimates of $2.8 billion.

The company left its dividend unchanged and announced $1.75 billion in share buybacks. BP, like most of its rivals, has used the huge profits of the last two years to embark on a huge share buyback plan.

The company outlined a commitment to repurchase $3.5 billion in shares during the first half of the year and at least $14 billion in shares during 2024 and 2025.

The results are the first since former chief financial officer Murray Auchincloss was confirmed as BP chief executive in January, four months after his predecessor Bernard Looney resigned for failing to fully disclose his past relationships with colleagues at the company.

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