BP Reports Mixed Q1, Production Down On Planned Outages, Plans $1.75B Share Buyback Program

by Lekha Gupta, Benzinga Editor
May 2, 2023 5:40 AM | 2 min read |
  • BP plc BP reported Q1 2023 sales and other operating revenues of $56.18 billion, missing the consensus of $58.88 billion.
  • Production was 969 mboe/d (+0.4% Y/Y), with underlying production declining 1.1% Y/Y on unplanned outages. 
  • The Renewables pipeline stood at 38.8GW (bp net), including a 15.5GW bp net share of Lightsource bp's pipeline. 
  • Underlying RC profit per American Depositary Share (ADS) came in at $1.66, beating the consensus of $1.40. 
  • Operating cash flow stood at $7.6 billion, vs. $8.2 billion in the prior-year quarter. Capital expenditure increased to $3.6 billion from $2.9 billion a year ago.
  • Net debt declined to $21.2 billion from $27.5 billion a year ago.
  • In March, BP, along with ADNOC, made a non-binding offer to obtain NewMed Energy private through buyout of free float and a partial acquisition of Delek’s interest. BP and ADNOC will attain 50% of NewMed Energy after closure. 
  • BP and ADNOC further intend to form a joint venture focusing on gas development in international areas of mutual interest, including the East Mediterranean.
  • Dividend: BP announced an interim dividend of 6.610 cents per share, to be paid on June 23, 2023, to ordinary shareholders and ADS holders on the register on May 12, 2023.
  • Repurchase: In Q1, BP repurchased shares worth $2.4 billion. The company also announced a new share buyback program worth $1.75 billion. 
  • Outlook: For 2023, BP reiterated both reported and underlying upstream production to be broadly flat Y/Y, with underlying production from oil production & operations to be slightly higher and production from gas & low-carbon energy to be lower. 
  • BP expects capital expenditure (including inorganic capital expenditure) of $16 billion-$18 billion in 2023. 
  • For Q2 2023, BP projects upstream production to be lower than Q1 2023 in oil production & operations and gas & low-carbon energy. 
  • BP expects share buybacks of about $4.0 billion and a dividend increase of about 4% annually. 
  • Price Action: BP shares closed lower by 0.67% at $40.01 on Monday.
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