BP reported a significant drop in profits for the first quarter of 2025, highlighting challenges in energy markets and ongoing strategic realignment. The British energy giant’s adjusted profit fell by 49% year-on-year to $1.38 billion, well below analyst expectations. This marks the third time in five quarters that BP has missed earnings forecasts.
The profit decline was largely attributed to weaker gas trading results and falling crude oil prices. Gas trading, once a strength for BP, faced volatility that impacted margins. Meanwhile, average oil prices remained relatively low, adding pressure to the company’s upstream performance.
Amid this downturn, BP announced a major internal change: the departure of Giulia Chierchia, the head of strategy and sustainability, who had championed BP’s earlier push into renewables. Her exit reflects a broader pivot under CEO Murray Auchincloss, who has been steering BP back toward traditional oil and gas production. The company highlighted recent operational improvements and six consecutive exploration successes as evidence of this renewed focus.
BP’s cost-cutting drive includes a $500 million reduction in operating expenses, the elimination of 3,000 contractor roles, and a review of another 3,400 positions. Net debt increased to $27 billion, prompting a revised debt target of $14–18 billion by 2027. Asset disposals worth $3–4 billion are also being considered.
The company also reduced its capital expenditure and halved its share buyback programme to $750 million, from $1.75 billion in the previous quarter. With oil prices expected to remain low and macroeconomic uncertainty persisting, BP faces a challenging year ahead.
Shares in BP have declined by 14% in 2025 so far, underperforming rivals Shell and TotalEnergies, as investors assess the company’s shifting priorities and long-term strategy.
via FT