02 May 2023
If you are covering BP’s latest results, please see the following comment from Jamie Maddock, equity research analyst at Quilter Cheviot:
"BP's latest financial results are reasonably uneventful, with the focus being on trading performance and a decrease in share buyback. Despite reporting a large earnings, which beat against expectations, the company's earnings were down compared to last year due to lower commodity prices. This may spell good news for households suffering with huge energy bills at the moment.
"The bright spot was an exceptional gas and oil trading performance. However, this aspect tends to be highly variable quarter to quarter, which raises some concerns over its sustainability.
"While the dividend remains unchanged from the previous quarter, the share buyback rate has slowed down. BP plans to continue pushing ahead with deals that enable the delivery of the energy transition, while spending remains unchanged.
"BP's financial framework is notable for its strength, supporting 4% dividend growth and $4bn per year of share buybacks down to $60 per barrel. This framework is critical in supporting BP's long-term plans for growth and investment in sustainable energy.
"Overall, while BP's latest results were not particularly exciting, the company's solid financial framework and commitment to delivering sustainable energy make it a strong contender."
