BP's first-quarter earnings missed expectations and caused its shares to fall more than 4%. The energy major slashed its share buyback after cash flow plunged and net debt spiked. Market watchers believe the weaker-than-expected results will increase pressure on BP's management and raise calls for deeper cost cuts and faster divestments of none-core assets. Below is a selection of analysts' comments:

BP's Earnings Were Weaker Than Expected

0706 GMT - BP reported weaker-than-expected numbers as its net income missed expectations by 10%, RBC Capital Markets analysts Biraj Borkhataria and Adnan Dhanani write. Lower corporate costs and improved performance in its customer segments were the key highlights, they add. Earnings in its gas and low carbon segment were surprisingly weak, they write. The cut to its share buyback was expected amid the weaker macroeconomic environment but is at the lower end of its guided range, they write. Shares trade down 3.2% at 350.20 pence. (adam.whittaker@wsj.com)

BP's Rising Net Debt Could Fuel Calls for Cost Cuts, Disposals

0730 GMT - BP's rise in net debt could prompt calls from investors like Elliott Investment Management to speed up cost cuts and offload non-core parts of the business, Hargreaves Lansdown's Derren Nathan writes. The London-based oil-and-gas giant has increased its disposals target to between $3 billion to $4 billion from around $3 billion, but this is not really going to move the dial when it comes to its $27 billion net debt, he adds. The company is making impressive progress, but it's a slow process and the difficult macroeconomic backdrop makes it challenging, he adds. Shares trade down 3.87% at 348.1 pence. (adam.whittaker@wsj.com)

BP Doing Best It Can in Sticky Situation, Hargreaves Lansdown Says

0735 GMT - BP is making strong progress in its oil and gas division but it will take time for new production to boost earnings, Derren Nathan, head of equity research at Hargreaves Lansdown, writes. BP has three new start-ups and six discoveries in the pipeline but upstream production is still set to fall this year, he adds. Its downstream division is performing better but weaker oil prices means management will be under even more pressure to meet expectations, he adds. Overall, BP is making the best it can of a sticky situation, he adds. Shares trade down 3.7% at 348.7 pence.(adam.whittaker@wsj.com)

BP Delivers Mixed Set of Earnings

0805 GMT - BP delivered a mixed set of results but rising net debt will cast doubts on its ability to continue buybacks amid a weakening macroeconomic environment, Jefferies analysts Giacomo Romeo and Kai Ye Loh write. Results in its customer and products division show good signs of improvement while earnings in its oil production and operations segment are slightly better than expected, they write. However, earnings from its gas and low carbon division are underwhelming compared with already lowered expectations. Shares trade down 3.9% at 348 pence. (adam.whittaker@wsj.com)

BP's Free Cash Flow Dependent on Future Asset Sales

0924 GMT - BP's free cash flow should rise in the coming months if it can sell $5 billion of assets, research director at XTB Kathleen Brooks writes. The oil giant's free cash flow dropped in the first quarter, partly because BP removed assets 'held for sale' from its free cash flow statement and because of annual bonus payments, Brooks writes. However, as the world tilts back to hydrocarbons it is not clear if the low-carbon assets will be sellable, she writes. Meanwhile, the company is selling its assets to boost its cash position--including undertaking a strategic review of its Castrol business--while paying bonuses despite trailing its peers, she adds. Shares trade down 4.1% at 347.25 pence. (adam.whittaker@wsj.com)

(END) Dow Jones Newswires

April 29, 2025 05:46 ET (09:46 GMT)

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