BP's Q1 Profit Tumbles 49% as Company Pivots Away from Green Energy
BP reported a 49% drop in Q1 2025 net profit to $1.38 billion, falling short of analyst expectations. The company announced a strategic shift, abandoning green energy goals to focus more on fossil fuel production. Despite challenges, BP committed to shareholder returns with an $0.08 dividend per share and a $750 million share buyback program. Net debt increased, and the company's pivot may signal broader implications for the energy sector's transition to renewable sources.
BP Shifts Gears: Cuts Renewable Spending, Boosts Oil and Gas Investment
BP has announced a significant strategic shift, reducing annual renewable energy spending by $5 billion while increasing oil and gas investment by 20% to $10 billion. The company aims to produce 2.3-2.5 million boepd of oil and gas by 2030. CEO Murray Auchincloss cited a slower than expected energy transition and strong hydrocarbon demand as reasons for the change. BP plans to raise dividends by at least 4% annually and conduct share buybacks of $750 million to $1 billion in Q1.