BP (NYSE:BP) reported a sharp decline in fourth-quarter profit as weaker refining margins, lower energy prices, and rising costs weighed on earnings. Despite the downturn, the company reaffirmed its commitment to shareholder returns with a dividend payout and a fresh buyback program.
For the final quarter of 2024, BP posted an underlying replacement cost (RC) profit of $1.2 billion, a steep drop from the $3 billion reported in the same period a year ago. The company also recorded a reported net loss of $2.0 billion, a significant swing from the $0.2 billion profit in Q3 2024.
Multiple factors contributed to the weak performance, including lower refining margins, sluggish fuel sales, and scheduled maintenance activity at refineries. While BP’s gas and low-carbon energy division saw an improvement from the prior quarter with $2.0 billion in underlying RC profit, earnings remained below year-ago levels. Meanwhile, the oil production and operations segment reported $2.9 billion in profit, supported by lower exploration write-offs but hampered by weaker realized prices.
Notably, BP’s customers and products division posted a $0.3 billion loss, as lower fuel margins and seasonal demand softness dragged on performance.
Despite the earnings slump, BP maintained its 8-cent-per-share dividend and announced a $1.75 billion share buyback for Q1 2025, underscoring its focus on returning capital to investors even in a challenging environment.