BP corporate - reported results analysis

BP rounded out the year with a disappointing set of results, amid a backdrop of intense speculation around the company. Reports that activist investor Elliot Management has taken a position in BP, just weeks before the company delivers a crucial capital markets update, have ramped-up talk that major change is on the way. There were no spoilers on the results call, but BP, never shy of raising expectations, teased that the update will represent “a fundamental reset of our strategy”, mapping out “a new direction for BP”. The results felt secondary. Q4 earnings came in slightly below analyst expectations, ending the year on a disappointing note. Full-year underlying profits of US$9 billion were down 36% on 2023. Net debt ended the year higher than it began, with gearing nudging 31% (including leases). BP will complete the US$7 billion of share repurchases it guided for 2024, but had already hinted that that level of buyback will not be sustainable through 2025.