BP plc announced on Tuesday that its underlying replacement cost (RC) profit for the fourth quarter of fiscal 2024 dropped 60% to $1.2 billion compared with a similar period a year ago. For 2024, the company reported that its RC profit decreased from $13.9 billion to $8.9 billion.
According to the company statement, the decline was mainly attributed to lower refining margins, seasonal declines in demand, and higher tax expenses. The company reported an underlying RC profit per share of 7.36 cents for the quarter and 54.40 cents for the entire year. By segment, Oil Production and Operations posted a quarterly profit of $2.6 billion, followed by a $1.8 billion gain in Gas and Low Carbon Energy. Meanwhile, Customers and Products reported a loss of $2.4 billion.
BP expects a decline in upstream production for the first quarter of 2025, mainly due to asset sales in Egypt and Trinidad, which will reduce output by 90,000 barrels of oil equivalent per day. Commenting on this and other figures, Chief Executive Officer Murray Auchincloss stated, "We now plan to fundamentally reset our strategy and drive further improvements in performance, all in service of growing cash flow and returns."
