BP to Buy Back $7 Billion in Stock Despite Profit Drop

LONDON — BP PLC, the U.K.-based oil giant, revealed plans to return $7 billion to shareholders this year through stock buybacks, despite reporting a nearly 30% drop in profits for the first half of 2024. The company’s underlying replacement cost profit fell to $5.5 billion from $7.6 billion in the same period last year, primarily due to decreased earnings from its refining operations. However, BP's second-quarter profit of $2.8 billion exceeded expectations, leading to a 1.3% increase in its stock price during morning trading in London. In addition to the buyback program, BP announced a 10% increase in its dividend, signaling a commitment to shareholder returns. CEO Murray Auchincloss emphasized the company's focus on becoming a "simpler, more focused and higher value company." This strategy appears to resonate with investors, as the stock price climbed to 4.60 pounds following the announcements. Despite these financial maneuvers, BP faces criticism for its environmental policies. Activists argue that the company is not doing enough to combat climate change, continuing to prioritize high-carbon projects over green investments. The recent decision to advance the Kaskida project in the Gulf of Mexico, alongside a reduction in commitments to biofuels and offshore wind, has drawn particular scrutiny. Alice Harrison, head of fossil fuel campaigns at Global Witness, expressed concern over BP's actions, stating, “As the world faces record-breaking heat, most of us are desperate to see urgent action on the climate crisis. Unfortunately, it’s clear that BP couldn’t care less.”