British oil company BP’s first-quarter net profit fell to $5 billion (CZK 107 billion) from $6.2 billion a year ago.The company also said in a press release today that it will slow its share buybacks. Despite the year-on-year decline, the profit for the first three months of this year is higher than analysts expected. They estimated it at $4.3 billion.
However, the company’s oil and gas business was very successful despite lower commodity prices. First quarter profit is higher than in the last quarter of last year.
BP to buy back $1.75bn of its shares before second quarter results are released
Energy companies are still generating a lot of extra cash. BP will buy back $1.75 billion of its shares before the second-quarter results are released, up from $2.75 billion in the previous three months.
BP’s dividend remained unchanged at 6.61 cents per share. In February, the company increased its dividend by 10 percent.
Because of their extraordinary profits, energy companies are facing demands, especially from some politicians, to pay higher taxes at a time when households have to cope with higher energy bills. BP was also criticised when the company cut its target to reduce carbon emissions by the end of the decade.
Source: CTK
