BP PLC (LSE:BP.) released fourth-quarter results that look mostly better than expected, with its remaining $1.75 billion quarterly buyback still in place, but the oil giant said it intends to review buybacks and capex as part of its strategy update later this month.
An underlying replacement cost (RC) profit for the quarter fell to $1.2 billion from $2.3 billion in the third quarter, reflecting weaker refining margins, higher impact from turnaround activity, seasonally lower customer volumes and fuels margins and higher other businesses & corporate underlying charge.
At the reported level a £2 billion loss was made, compared with a $0.2 billion profit for the third quarter, mainly due to "adjusting items" of $3.4 billion.
Adjusted earnings per share of 7.36 cents were below the consensus estimate of 8.43 cents.
But operating cash flow of $7.43 billion was better than the expected $6.13 billion and adjusted net debt was slightly lower than predicted.
CEO Murray Auchincloss said: "In 2024 we laid the foundations for growth. We have been reshaping our portfolio - sanctioning new major projects, and focusing our low-carbon investment - and we have made strong progress in reducing costs.
"Building on the actions taken in the last 12 months, we now plan to fundamentally reset our strategy and drive further improvements in performance, all in service of growing cash flow and returns."
He said "a new direction for BP" will be shared with investors and analysts at the capital markets update on 26 February.
Looking ahead, BP said it expects upstream production in the first quarter of 2025 to be lower than the preceding quarter due to asset sales in Egypt and Trinidad completed towards the end of the fourth quarter.
Downstream, seasonally lower volumes are also expected, with fuel margins expected to remain sensitive to movements in cost of supply and earnings delivery to remain sensitive to the relative strength of the US dollar.
In its products arm, refining margins are also expected to remain low, though there will be a lower level of refinery turnaround activity compared to the fourth quarter.