BP’s Profit Falls 60% In Q4 Due To Weaker Margins, Lower Prices And Higher Costs

Oil giant BP (LSE:BP.) has reported a significant fall in its profits for the fourth quarter, citing weaker refining margins, lower energy prices and higher costs.

The company posted an underlying replacement cost profit of $1.2 billion for the final quarter of 2024, a drop from $3 billion in the same period a year earlier.

The reported loss for the quarter was $2.0 billion, compared with a modest profit of $0.2 billion in the third quarter of 2024.

A number of factors contributed to the downturn in earnings, including lower refining margins, weaker fuel sales and the impact of turnaround activity at refineries.

BP’s gas and low-carbon energy business reported an underlying RC profit of $2.0 billion, up from the previous quarter but below the levels seen a year earlier.

The company’s oil production and operations division posted an underlying RC profit of $2.9 billion, which reflects lower exploration write-offs but also weaker realized prices.

Despite the weaker earnings, BP maintained its commitment to shareholder returns, announcing a dividend of 8 cents per share and a $1.75 billion share buyback program for the first quarter of 2025.

The company is expected to say later this month that it will scale back renewable projects and increase production of oil and gas. This follows similar moves from rival firms such as Shell (LSE:SHEL) and Equinor (NYSE:EQNR).

 

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