BP Reports $1.38 Billion Profit, Cuts Buyback Amid Rising Debt

BP reported a sharp decline in first-quarter profits, with underlying replacement cost (RC) profit falling to $1.38 billion, missing analyst expectations and down significantly from the previous year. The company's net profit and revenues also dropped, and operating cash flow was well below forecasts, while net debt rose by nearly $4 billion to $26.97 billion. BP announced a quarterly share buyback of $750 million, which was at the low end of its guidance range, and an interim dividend of 8 cents per share. The company cited lower oil prices and increased debt as pressures on its balance sheet, and CEO Murray Auchincloss reaffirmed BP’s commitment to strengthening the balance sheet and focusing on upstream growth while scaling back investment in the energy transition. Additionally, BP's head of strategy, Giulia Chierchia, will depart in June and will not be replaced. Despite market volatility, BP expects upstream production to remain broadly flat in the second quarter.