BP PLC (BP:NYE) Reports Record Earnings

BP Charges Ahead Expanding Electric Charging in the US Amid Tesla's Departure (Consensus "Hold")

BP Earnings Results

BP PLC, the global oil and gas company, reported a record profit of $28 billion for 2022 and increased its dividend, but drew criticism from climate activists by reducing its previous plans to cut oil and gas output and reduce carbon emissions by 2030. The CEO, Bernard Looney, has been working to pivot the company towards renewables and low-carbon energy, but scaled back plans to cut oil output, now aiming to produce 2 million barrels of oil equivalent per day by 2030, a 25% reduction from 2019 levels instead of the original 40% cut. As a result, BP’s goal to cut emissions from fuels sold to customers was reduced to 20-30% by 2030, from 35-40%. Despite this, BP still aims to reach net zero emissions by 2050.

BP’s shares have underperformed compared to rival energy companies, but the company still plans to divide its spending equally between oil and gas and its energy transition businesses, with a budget of up to $18 billion. Renewables and electric vehicle charging currently account for 30% of the budget compared to 3% in 2019. BP aims to have 50 gigawatts of renewable projects under development and operating by 2030 and wants to increase its focus on renewable natural gas. The company will focus its global oil and gas operations in nine regions, with plans to increase output from its U.S. shale business and in the Gulf of Mexico.

While many investors support Looney’s strategy, some climate activists argue that BP cannot claim to be aligned with the 2015 U.N. backed goals to battle climate change if a majority of its investments are still tied to fossil fuels. Despite this criticism, BP shares rose 5.4% to their highest since early 2020 after the announcement of its results.

BP Stock Price Forecast & Analysis

BP PLC ADR latest stock price is USD 34.84 as of the last closing. 15 analysts have given an average target price of USD 40.00 for the stock over the next 12 months. The average analyst rating for BP PLC ADR is “Buy”. However, Stock Target Advisor has a slightly bearish analysis of the stock, based on 6 positive signals and 9 negative signals. The stock price has decreased by 3.68% in the past week, increased by 1.10% over the past month, and gone up by 5.96% over the past year.

 

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