British oil giant BP reported a slightly weaker-than-expected annual profit on Tuesday due to falling fossil fuel prices. The company announced full-year 2023 net income of 13.8 billion USD, down sharply from a record 27.7 billion USD the previous year. Analysts had expected annual net profit of 13.9 billion USD, according to a consensus estimate compiled by LSEG.
BP’s fourth-quarter net profit came in at nearly 3 billion USD, beating analysts’ expectations of 2.6 billion USD.
The oil giant also announced a 10% increase in its dividend and an acceleration of its share buyback program to 1.75 billion USD each quarter in the first half, up from 1.5 billion USD in the previous quarter.
The company’s shares, which are traded on the London Stock Exchange, are down about 2.6% since the beginning of the year.
On Thursday, British rival Shell reported a better-than-expected full-year profit and announced a 4% increase in its dividend and a new 3.5 billion USD share buyback program.
BP’s report comes as the company comes under pressure from an activist investor over its strategy.
In a letter to BP Chairman Helge Lund and then-interim CEO Murray Auchincloss in October, Bluebell Capital Partners urged the company to increase its oil and gas investments and reduce clean energy spending.
BP is also undergoing a leadership change. Last month, the company appointed Murray Auchincloss as permanent CEO, roughly four months after his predecessor Bernard Looney resigned after less than four years in the job.
The firm, which was one of the first energy giants to announce plans to cut carbon emissions to zero “by 2050 or sooner”, downplayed those climate plans last year. Almost a year ago, BP said it would instead aim to cut emissions by 20-30%, noting that it needed to continue investing in oil and gas to meet demand.
