British energy giant bp failed to meet expectations with a 35.5% drop in net profit last year, according to its financial results statement released on Tuesday.
bp's underlying replacement cost (RC) profit for 2024 was $8.9 billion, down from $13.8 billion in 2023, primarily due to lower refining margins, weaker realizations, and a decline in gas marketing and trading results.
The company's underlying RC profit for the fourth quarter of 2024 was of $1.17 billion, compared to $2.99 billion for the same period of 2023.
The decline in profit reflects weaker realized refining margins, a higher impact from turnaround activity, seasonally lower customer volumes and fuel margins, and increased charges from other businesses and corporate activities.
bp joins other major oil companies that have seen a drop in earnings in 2024, after record profits in the past two years, due to stabilizing energy prices and a slowdown in global oil demand.
While navigating ongoing market fluctuations, bp announced its commitment to remain focused on financial resilience, disciplined investment, and delivering value to shareholders through its diversified energy portfolio.
'In 2024 we laid the foundations for growth. We have been reshaping our portfolio - sanctioning new major projects, and focusing our low-carbon investment - and we have made strong progress in reducing costs. Building on the actions taken in the last 12 months,' said Murray Auchincloss, bp CEO.
'We now plan to fundamentally reset our strategy and drive further improvements in performance, all in service of growing cash flow and returns,' Auchincloss commented.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr