By Joe Hoppe

BP on Tuesday reported a rise in first-quarter underlying replacement cost profit, beating expectations, and declared an additional $1.75 billion share buyback.

The British oil-and-gas major made an underlying replacement cost profit of $4.96 billion in the three months through to the end of March, up from $4.81 billion in the previous quarter but below the $6.25 billion in the first quarter of 2022.

This was above a market consensus of $4.27 billion, provided by the company and averaged from the forecasts of 25 analysts.

BP attributed this to an exceptional gas marketing and trading result, a lower level of refinery turnaround activity and a strong oil trading result, partially offset by lower liquids and gas realizations and lower refining margins.

The company posted a net income of $8.22 billion. This compares with a net profit of $10.8 billion in the immediately prior quarter, it added.

The FTSE 100 energy group also said it plans to launch a $1.75 billion share buyback program, prior to announcing its second-quarter results.

BP added that the board remains committed to using 60% of 2023 surplus cash flow for share buybacks. Based on current oil price forecasts, it expects to be able to deliver buybacks of around $4.0 billion a year.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

May 02, 2023 02:37 ET (06:37 GMT)

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