BP Profit Falls, but It Still Sees ‘Potential to Grow’ in Oil and Gas
Published On Oct 29, 2024, 9:08 AM
BP's latest earnings report revealed a significant drop in profits for the third quarter, marking their lowest earnings in nearly four years. Adjusted earnings were reported at $2.3 billion, down from both the previous quarter and the same quarter last year. Factors contributing to this decline include falling oil prices and weak trading performance. CEO Murray Auchincloss confirmed a focus on increasing cash flow for shareholders, suggesting potential cuts to the company's generous stock buyback program due to the current market conditions. Analysts are concerned about the sustainability of these buybacks moving forward, especially if oil prices remain low.
Stock Forecasts
BP
Negative
BP is facing significant challenges due to a drop in oil prices and a weak trading environment. This drop in earnings may lead to reduced stock buybacks, which could negatively affect investor sentiment and the stock price. Furthermore, given that the company has struggled in the past year with a 26% decline, the outlook for BP remains cautious.
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