Global energy giant BP posted a $1.4bn profit in the first quarter of 2025, about half its first-quarter profit a year ago, as a mix of corporate and market challenges impacted performance.
CEO Murray Auchincloss pointed to market volatility and economic uncertainty for the weaker results. BP is also in the midst of a ‘resetting strategy’ and is reallocating capital.
The reset, unveiled in February, marks a fundamental shift, aiming to prioritise oil and gas while reducing investment in low-carbon energy and renewables – and followed a 35% drop in annual profits to $8.9bn.
The first quarter underlying result was largely driven by a weak gas marketing and trading result, lower production, including the impact of divestments, and higher costs, mainly non-cash costs and startup costs related to major projects. In the corresponding quarter last year bp posted $2.7bn profit.
“We have extensive experience of managing through many price cycles and know how to navigate a weaker environment should we see a sustained period of lower prices,” said Auchincloss.
Three of 10 major upstream projects are now operational – Cypre in Trinidad, Raven infills in Egypt and GTA phase 1 in Mauritania and Senegal, which recently exported the first LNG shipment and will ramp up to 2.4 million tonnes of LNG per year.
CFO Kate Thomson said the gas and low carbon energy result was $1bn lower than the previous quarter.
Full-year capital expenditure is now expected to be around $14.5bn, around $500m lower than previously guided, and the company aims to deliver $4bn to $5bn of structural cost savings by 2027.
