BP publishes a sharp drop in the benefit of the first quarter on lower oil prices

British oil giant COP On Tuesday, published a slightly lower than expected first quarter net profit, following a recent strategic reset and a collapse of raw prices.

The major oil and besieged gas has displayed an underlying replacement cost profit, used as an indirect indicator of net profit, of $ 1.38 billion for the first three months of the year. This missed the expectations of $ 1.6 billion analysts, according to a compiled consensus of LSEG.

BP's net profit had reached $ 2.7 billion a year earlier and $ 1.2 billion in the last three months of 2024.

The results arise as the energy major faces new pressure from militant investors less than two months after announcing a strategic reset.

Seeking to rebuild investors' confidence after an extended period of underperformance compared to its peers of industry, BP undertook in February to reduce renewable expenditure and to stimulate annual expenses for its core business of oil and gas.

BP CEO, Murray Auchincloss, said “Squawk Box Europe” on Tuesday from CNBC that the company was “very well started” to deliver its strategic reset.

“We had an excellent operational quarter. We had our highest operational performance upstream of history. Our refineries in the first quarter were made best in 24 years. We had six exploration discoveries in a row, which is really unusual and we started three major projects,” said Auchincloss.

For the first quarter, BP announced a dividend by ordinary action of 8 cents and a share repurchase of $ 750 million.

The net debt reached $ 26.97 billion in the period of January-March, compared to $ 22.99 billion at the end of the fourth quarter.

BP had previously warned against upstream production lower and the higher net debt in the first quarter, compared to the last three months of last year.

The green U-Tour strategy does not seem to have gone far enough for the activist investor Elliott Management, who became a public last week with a participation of more than 5% in the listed company.

The disclosure means that the second US shareholder in the BP hedge fund after BlackRock, the largest asset manager in the world, according to LSEG Data.

Elliott would first have assumed a position in the oil and gas company in February, which made a rally of the action course in the middle of the expectations that its involvement could put pressure on BP to put the gears back to its oil and gas activities.

Auchincloss de BP refused to comment on interactions with investors when asked if the company was under pressure from Elliott to go beyond the plans announced in its February pivot.

In particular, BP suffered a rebellion of shareholders at its annual general meeting earlier this month. Almost a quarter (24.3%) of investors vote Against the re -election of the outgoing president Helge Lund, a symbolic result which reflected a feeling of deep frustration among the shareholders of the company.

Mark Van Baal, founder of Dutch activist Investor followed, told CNBC last week that he hoped that shareholders' revolt means that Amanda Blanc, who directs the process to find Lund's successor, will look for a new chair which is “competent in the climate” and will not respond to short -term activists “.

Lund is expected to leave his role next year.

The sub-performance of BP compared to the peers of the industry such as Exxon Mobil, Chevron and Shell put the major in energy under the spotlights as a candidate for taking control. Energy analysts, however, wondered if one of the most likely pretenders will occasionally increase.

BP Auchincloss said on Tuesday that it would not speculate on the question of whether the company was a buy -in target, but confirmed that the oil adult had not requested any kind of protection against the British government.

“What I will say is that we are a strong and independent business and we have growth in the sector. And if we can provide the growth of the sector, and the first quarter is a fantastic example of this, then I have no concerns. I think we are going to do very well,” said Auchincloss.

Oil prices have dropped in recent months of fears. Benchmark International Brent Brut eventually with June delivery exchanged $ 65.19 per barrel on Tuesday morning, down more than 1% for the session. This is less than about $ 84 a barrel a year ago.

When asked if the lower crude crude prices could endanger certain plans for resetting the company, Auchincloss said: “Not really. We have a balance between the products we think that generate income for us. So oil, natural gas and refined products.”

– Ruxandra Iordache de CNBC contributed to this report.