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Murray reiterating EBITDA on growth engines (renewables) can grow from $1bn (current) to $3-4bn EBITDA by 2025. Some macro headwinds but broadly confident.
Analyst Q & A 1pm
They will also host a live question and answer session (Q&A) from 1pm BST/8am EDT to 2pm BST/9am EDT
https://www.bp.com/en/global/corporate/investors/results-reporting-and-presentations/quarterly-results-and-webcast.html
Hi Jakers not what I expected. MmFor me paying down the debt was a priority
There’s nothing better than being debt free.I am also not happy with the board as they were aware of Loonies behaviour in the work place
An absolute disgrace
They all should go
Hi Spights,
Hmmmm ... not exactly the stellar performance I was hoping for, and they are hell bent on spending another 1.75BN in Q2 on yet more buybacks...
More alarming is the increase in borrowing to 24Bn. (not including gom)
So we are hauling somewhere in the region of 34Bn of debt currently. I would really like to know the financial advantages of the ongoing share buybacks v the interest charges for servicing this massive debt burden. Surely more emphasis should be given to debt reduction. Nothing much to be cheerful about sadly, and no uplift in the dividend.
BP sticks with multi-billion dollar investor payout plans as first quarter profits miss City forecasts
BP, the UK’s second-biggest oil major, stuck with its plans to return cash to shareholders today, even as its quarterly profit fell and missed City forecasts.
For the first quarter of the year, underlying replacement cost profit fell to $2.7billion, from $2.9 billion in the fourth quarter and almost $5 billion in the same period a year ago. It was expected to be $2.9 billion.
Oil and gas prices on global energy markets were lower in the period
BP will keep the pace of its share buy back at $1.75 billion for the quarter, and repeated its commitment to return $3.5 billion in the first half of the year.
Murray Auchincloss called the numbers “resilient”, and pointed to cost-cutting plans:
“Oil production was up ... We are simplifying and reducing complexity across BP and plan to deliver at least $2 billion of cash cost savings by the end of 2026.”
Probably I can't think of anyone worse.
The read across from Shell is not good. Also I can't really tell from the announcement whether they're persevering with their transition strategy or backing off. Uncertainty is never good - don't leave it for people to read tea leaves - be clear whether strategy is unchanged, we're reviewing or here's the new plan.
To paraphrase Peter Drucker: A good organization must be able to endure and even thrive despite bad managers, as sooner or later it will get them.
I hadn't realised the BP underperformance over the past year compared to Shell. Will Looney go down not only as a sex pest but the worst CEO at BP for generations?
Nothing magical about what Tufan has done at RR - he came in, cut the loss making businesses and sacked a load of people. great for short term share gains but probably not the best beyond a five year stint
Quickest and surest way to unlock value for both sets of shareholders. Combined BP / Shell would be slightly bigger than Exxon post-Pioneer acquisition with absolutely whopping operating cash flow.
Will it happen, never say never!
All IMHO DYOR
Happy
Stop these buybacks, waste of money in my opinion.
Further explanation in the pre-published notes ahead of conference call:
"Turning to cashflow and balance sheet: Operating cashflow of $5.0 billion was around $4.4 billion lower than the previous quarter, largely reflecting a working capital build of $2.4 billion in the first quarter compared to a release in the previous quarter. The working capital build was driven by expected seasonally higher inventory build and the usual timing effects of payments including the annual incentive payments to employees, in addition to the impact of the price environment. The build in working capital contributed to a $3.1 billion increase in net debt to $24 billion at the end of the first quarter. Looking forward, and subject to the price environment and the $1.1 billion scheduled payment in the second quarter relating to the Gulf of Mexico oil spill settlement, we expect most of this quarter’s build to be reversed by the end of the third quarter."
I never thought Murray was the right man for the job and woke Looney seemed to surround himself with women to bonk lured by his ridiculous green targets.
Underneath all the baggage of poor, recent management are a brilliant set of assets waiting to be fully exploited.
BP can't survive as an independent. It's being left behind because of woke rubbish when we should be unashamedly plowing more capital into oil and gas production INCREASES.
Something will give and I think it'll be BP's independence. Until then I will wait and keep picking up the decent dividend. I think the assets are much better than the management so comfortable holding for a fundamental rerating one way or another.
All IMHO DYOR
Happy
Net debt increase is temporary and attributable to a large working capital build which will reverse in future quarter(s). Increased net debt is not funding buybacks because BP takes a view over more than one quarter.
Conference call will be important for further explanation of the working capital build.
All IMHO DYOR
Happy
Didn't take Tufan that long at RR.
So the share buybacks have been funded by the balance sheet? Net debt up when interest rates at their highest. Not a good long term sign.
Lackluster BoD and we get what we deserve re performance.
Time a modern, dynamically managed energy company took pity on us and made an offer for the dinosaur’s bones, innit ?
SHELL … please ?
I kind of agree with you. I hold BP and Shell 50/50, but somehow Shell feels more dynamic.
Having said that, dividend/buyback maintained plus $2 bn of savings to come. Not to be sniffed at!!
Bloomberg reporting higher debt to fund the burnbacks!!
Today reflect Lonney's loony approach. Will take a few months before latest changes bare fruit.
Absolute no imagination. Not the start The CEO would have wanted, nor the outlook. Run by an ancient stoic board that needs culling off
Underwhelming. Not a dynamic company
BP's first-quarter profit was hit by lower oil and gas trading, missing market forecasts, but the British energy company confirmed a $1.75 billion share buyback.
The London-based oil-and-gas giant said Tuesday that underlying replacement-cost profit--a metric similar to net income its U.S. peers report--was $2.72 billion, a marked decline from $4.96 billion in the same quarter last year. This missed a forecast of $2.87 billion, according to a company-compiled estimate from 24 analysts.
Bp today announced an interim dividend of 7.270 cents per ordinary share which is expected to be paid on 28 June 2024 to ordinary shareholders