BP reports 48% profit drop as strategy chief exits

By Shadia Nasralla

LONDON (Reuters) -BP connected Tuesday reported a deeper-than-expected 48% driblet successful nett net to $1.4 cardinal connected weaker refining and state trading and announced the departure of its strategy main arsenic it tries to enactment up capitalist confidence.

CEO Murray Auchincloss is nether unit from activistic capitalist Elliott to amended profitability and chopped costs. He has announced plans to merchantability $20 cardinal of assets done to 2027.

The British vigor elephantine is abandoning a determination to slash hydrocarbon accumulation and boost its low-carbon business, plans pushed by strategy and sustainability main Giulia Chierchia who announced connected Tuesday that she would measurement down connected June 1.

U.S. money manager Elliott Investment Management had wanted a alteration of strategy main arsenic it seeks higher escaped currency travel done deeper cuts to spending and costs, sources acquainted with the substance told Reuters.

BP's shares person lagged peers since its foray into renewables nether erstwhile CEO Bernard Looney who brought Chierchia into BP. They were down much than 4% aft Tuesday's nett miss, compared with a 1% autumn successful a wider scale of vigor companies.

BP posted a first-quarter underlying replacement outgo profit, oregon adjusted nett income, of $1.38 billion, beneath the $1.53 cardinal expected by analysts successful a company-provided poll.

That was down from $2.7 cardinal a twelvemonth earlier.

Profit astatine its state and low-carbon portion was down astir 40%, deed by weaker trading and little accumulation aft plus sales.

Its customers and products concern was down by astir 47%.

BP said it expects to behaviour a dense refinery attraction programme successful the 2nd quarter, which apt means little output.

Amid an industry-wide autumn successful refining profitability, BP's refining margins averaged $15.20 a tube successful the archetypal quarter, down from $20.60 a twelvemonth earlier.

BP is buying backmost $750 cardinal successful shares for the quarter, astatine the debased extremity of its guided range. That marks a slowdown from buybacks that totalled $7.1 cardinal past year. It accrued its outlook for plus income this twelvemonth to $3-$4 cardinal from $3 billion.

It said it would walk $14.5 cardinal this year, astir $500 cardinal little than its erstwhile guidance, and reiterated its $13-$15 cardinal people for adjacent twelvemonth and 2027.

Global benchmark Brent crude prices averaged astir $75 a tube during the January-March quarter, compared with astir $87 a twelvemonth earlier.

Earlier this month, lipid prices went into escaped autumn aft U.S. President Donald Trump announced tariffs connected trading partners and Brent is present hovering astir $66 a barrel.

"In the lawsuit of sustainably little prices, we would expect deflation to go evident crossed our superior plans and we spot astir $2.5 cardinal of further superior flexibility, should we necessitate it," Auchincloss said successful a presentation.