By Christian Moess Laursen
BP posted higher-than-expected annual profit, joining other oil-and-gas giants in showing resilience despite volatile energy prices, although results still dropped from the prior-year’s record highs.
The British energy major on Tuesday reported $13.84 billion in full-year underlying replacement cost profit–a similar metric to net income that the U.S. oil companies report–down significantly from $27.65 billion in the year before when soaring energy demand supercharged prices following Russia’s invasion of Ukraine.
The result, which edged above a consensus forecast of $13.83 billion compiled by Visible Alpha, was due to lower realizations, portfolio changes, lower refining margins and lower oil trading, the company said.
Oil majors have faced volatile energy prices during the year, especially in the fourth quarter, but strong gas trading and persistent demand for oil helped U.K. rival Shell and U.S. peers Exxon and Chevron to post healthy profits last week. Shell reported $20.28 billion, while Exxon and Chevron posted $36 billion and $21.37 billion, respectively.
For the quarter, BP booked $2.99 billion in underlying replacement cost profit, down from $3.29 billion in the preceding quarter, but above a consensus forecast of $2.77 billion compiled by the company.
The quarterly result reflects strong gas trading and higher oil realization, offset by lower refining margins and weak oil trading, the London-based company said.
“2023 was a year of strong operational performance with real momentum in delivery right across the business,” Chief Executive Murray Auchincloss said.
In addition, BP said it intends to buy back $1.75 billion worth of shares in the first three months of the year, aiming for a total of $3.50 billion in the first half. Dividends were kept at 7.27 cents, matching the preceding quarter’s payout.
Write to Christian Moess Laursen at christian.moess@wsj.com
