31 October 2023
If you are covering BP’s latest financial results, please find below a comment from Jamie Maddock, energy research analyst at Quilter Cheviot:
“BP delivered a disappointing set of results this morning, with earnings falling sharply since last year and coming in well short of expectations at a time when there is still uncertainty at the top of the business.
“While oil and gas production performed relatively well, it was not enough to offset the weak trading performance within the Gas & low carbon division, although it should be noted prior quarters of trading have been exceptional.
“The immediate impact of the Russian invasion of Ukraine has now worn off, and while geopolitical tensions are rising elsewhere, they haven’t moved the needle in energy prices significantly for it to translate to BP’s bottom line. With central banks in developed economies determined to stay in a higher interest rate environment for longer and stump demand, it may be a volatile period for the oil and gas majors before we get any indication of a return to ‘normal’ economic conditions.
“For BP, however, this fall off in earnings hasn’t been enough to change any strategy. The share buyback continues at the same rate and the dividend was left unchanged as expected. The search for a new CEO remains ongoing, with Murray Auchincloss continuing in the interim. For as long as that is the case, BP will continue on its road to phasing out hydrocarbons and moving more into sustainable fuel, albeit at a more moderate pace.”
