BP’s gas woes slashes profit down by 73.6 percent to £2.5bn | City & Business | Finance

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Energy giant BP is expected to blame weaker gas prices for its first quarter net profits tumbling 73.6 percent to £2.4billion on Tuesday.

Aside from falling profits, analysts believe that BP is likely to say that its revenues for period January to March dropped 13.4 percent to £39billion. Its first quarter dividend is expected to be maintained at 7 US cents or 5.6p per share.

Like its arch rival Shell last week, BP is expected to say that it saw weaker performances from all its business segments, with the exception of a flat result from its oil production and operations arm.

Danni Hewson, AJ Bell’s head of financial analysis, said: “Natural gas may have a bigger impact on BP’s profits than many expect. Its gas and low carbon energy unit was the biggest earner a year ago, but earnings have since slumped as the natural gas price has retreated.”

Last week arch rival Shell reported a fall in its net profits due to lower gas prices, down 15.2 percent to £5.9billion. Its revenues for the first three months of 2024, Shell produced revenues of £57.9billion, down 16.7 percent.

Although its profits fell, Shell cheered markets by beating analysts’ profit forecasts by £799million. It also pleased investors by announcing plans to buy back a further £2.8billion of its shares to reward investors, having already spent as much this year doing so. It kept its dividend unchanged at 34.4 US cents (27.5p) per share, a payout worth over £2billion to investors.

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