Trending: BP's 1Q Share Buyback Leaves Investors Gloomy Despite Strong Results
May 02 2023 - 7:13AM
Dow Jones News
1043 GMT - BP PLC is among the most mentioned companies across
news items over the past five hours, according to Factiva data. The
energy giant reported a strong set of first-quarter results from
trading oil and gas on Tuesday, beating market expectations, and
said it would buyback a further $1.75 billion in stock, though
shares fell in morning trading. The company's underlying
replacement-cost profit of $4.96 billion beat the $4.27 billion
average, forecast by 25 analysts in a survey compiled by the
company. However, the scale of the share buyback appears to have
disappointed investors, according to analysts like RBC Capital
Market's Biraj Borkhataria, who said in a research note the
company's forecast for higher maintenance costs from oil-and-gas
production and lower refining margins could weaken its cash flow.
The disappointing buyback total, and accompanying guidance around
further returns also hints at the longer-term challenge facing the
company, as it looks to balance investing in the energy transition
while still doling out plenty of cash to keep investors happy, AJ
Bell investment director Russ Mould says in a market comment.
Shares at 1038 GMT were down 27.7 pence, or 5.2% at 506.7 pence.
Dow Jones & Co. owns Factiva. (joseph.hoppe@wsj.com)
(END) Dow Jones Newswires
May 02, 2023 06:58 ET (10:58 GMT)
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