BP’s quarterly profit falls to USD 5 billion but beats estimates

British oil company BP’s net profit fell to USD 5 billion (CZK 107 billion) in the first quarter, from USD 6.2 billion a year earlier. The company also said in a press release today that it would slow its share buybacks. Despite the year-on-year decline, profit for the first three months of this year was higher than analysts had expected. They had forecast USD 4.3 billion.

The company performed very well in oil and gas trading, despite lower commodity prices. First-quarter profit was higher than in the final quarter of last year.

Energy companies are still generating plenty of excess cash. Before releasing its second-quarter results, BP will buy back USD 1.75 billion worth of its shares; it bought back USD 2.75 billion worth in the previous three months.

BP’s dividend remained unchanged at 6.61 cents per share. The company raised it by ten percent in February.

Energy companies are facing calls, particularly from some politicians, to pay higher taxes because of their exceptional profits, at a time when households have to cope with higher energy bills. BP has also faced criticism after it scaled back its target for reducing carbon emissions by the end of the decade.