BP joined peers in reporting record profits for 2022.
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Shares of oil major
BP
were rising on Tuesday after it said it would ease its transition to producing low-carbon energy.
Investors cheered the company’s decision to lower its oil-and-gas output at a slower rate than previously targeted. BP (ticker: BP) will now try to reduce fossil-fuel production in 2030 by 25% from 2019 levels. That compares with a previous target of a 40% reduction.
The reversal from CEO Bernard Looney is a response to criticism that its focus on environmental, social and governance issues may be hurting its share price. Way back in the early 2000s, then-CEO John Browne gave a speech in which he said the company needs to go Beyond Petroleum, not long after the firm had officially changed its name from British Petroleum to BP.
Oil companies benefited greatly from the spike in crude prices after Russia invaded Ukraine a year ago. BP in particular benefited from the spike in gas-price volatility. On the other hand, it was forced to abandon its holdings in Russia, resulting in a $25.5 billion accounting charge.
London-based BP nevertheless joined peers in reporting record profits from its oil and gas sales in 2022, recording $27.7 billion for the full year. That beat the previous high from 2008. Fourth-quarter earnings slightly missed analysts’ estimates.
BP also boosted its dividend by 10% and announced a new $2.75 billion in buybacks over the next three months. Shares were up 4.1% in early London trading.
Separately,
Chevron
(CVX) was reported to be close to signing a deal to do shale gas exploration in Algeria. Increasing output in that nation would help replace supplies lost under international sanctions against Russia, The Wall Street Journal reported. Chevron didn’t immediately respond to a request for comment early Tuesday.
Write to Brian Swint at brian.swint@barrons.com
Credit: marketwatch.com