BP's earnings drop drastically by 69.9%, reaching only EUR 604 million during the initial quarter.
💰 BP's Q1 2025 Results 📊
In a nutshell, BP's pre-tax profits took a dive, landing at $3.13 billion—that's a 32.44% decrease compared to the same quarter last year. Total revenue also took a hit, shrinking by 4.1% to an overall revenue of $47.88 billion.
Looking at the details, between January and March this year, BP splurged $27.72 billion on purchases, while managing to slash production costs by 10.7% to a total of $6.114 billion.
The company reported their results in dollars, seeing as that's the currency used for trading crude oil. However, BP's debt story isn't all sunshine and rainbows—it reached a whopping $26.968 billion at the end of the first quarter, marking a 12.2% increase from the same period last year.
CEO Murray Auchincloss shared some insightful tidbits in a recent announcement. He revealed that BP has made "six exploration discoveries" this year and is making progress with its divestment program. Auchincloss confidently declared, "All this with strong operational performance."
Amidst market volatility, Auchincloss stays focused on their plans to boost the balance sheet, trim costs, and improve cash flow and profitability, aiming to create more long-term value for shareholders.
In the midst of President Trump's new global tariffs, the price of oil took a nose-dive in early 2025, settling around $65 per barrel.
For more on the oil exploration shenanigans in Etosha-Okavango, check out the ONG's call for agreement suspension.
The volatility in oil prices, as seen in January 2025 with the price settling around $65 per barrel, could impact BP's future taxation expenses due to the lower revenue.
BP's reduction in production costs, down by 10.7% in Q1 2025, may help offset some of the costs associated with their six exploration discoveries made this year.
Despite the strong operational performance, the finance department finds itself grappling with the increasing costs, including the $26.968 billion debt at the end of Q1 2025, which represents a 12.2% increase from the same period last year.
