BP announces a lower-than-expected $1.4 billion profit

BP missed expectations on Tuesday, with a underlying replacement costs profit of $1.38bn for the first three months. This was below the $1.53bn expected by analysts according to a poll conducted by the company.

BP announced that it would buy back another $750,000,000 in shares this quarter. This is at the lower end of their guided range.

The company said that it will spend $14.5 billion in this year's budget, which is $500 million less than the previous estimate, and has reiterated its target of $13 to $15 billion for 2027 and next year.

Sources familiar with the matter say that Elliott, an activist investor, wants BP's free cash flow to be increased through cost cuts and spending reductions. He also wants to replace its strategy director and create upstream units and downstream units in order to clearly define accountability.

LSEG data show that Elliott has increased its holding in BP from 5% to just under 5%. This puts it right between the top two shareholders, BlackRock and Vanguard.

BP reported a underlying replacement costs profit - BP's definition of adjusted net earnings - of $2.7 Billion in the first quarter of last year. (Reporting and editing by Jason Neely; Shadia Nasralla)

(source: Reuters)