BP’s first-quarter profits fell 49 per cent year on year to $1.38bn, falling short of analysts’ forecasts, as the UK energy major struggles to turn around its business.
The company said on Tuesday that it had suffered from weakness in its gas marketing and trading business, and that its lower cash flow in the quarter had contributed to a $4bn rise in net debt since the end of last year to $27bn.
BP, which this year abandoned its strategy to become a leader in green energy, has been under pressure from activist investor Elliott Management to increase its free cash flow by making deep spending cuts.
On Tuesday, BP said Giulia Chierchia, its head of strategy who helped oversee its previous push for clean energy, would leave the company in June and would not be replaced.
The FTSE 100 group said it now planned to sell at least $3bn-$4bn of assets this year and remained confident it would be able to reduce its debt to a range of $14bn-$18bn by the end of 2027.
Despite the weakness, BP said it would buy back $750mn of shares, down from $1.75bn in the previous quarter and at the bottom of the range of analysts’ expectations.
The oil major’s shares have fallen nearly 10 per cent in the year to date, compared with a near 3 per cent fall for rival Shell and a 3.5 per cent rise for TotalEnergies.