BP HAS reported a drop in profit for the first quarter of the year and higher net debt amid lower oil prices.

The UK oil major reported underlying replacement cost profit of $2.7bn (£2.2bn) in the first quarter, compared to $3bn (£2.4bn) in the fourth quarter of 2023 and $5bn (£4bn) in the first quarter of 2023.

The group also saw net debt increase to $24bn (£19.1bn) from $20.9bn (£16.7bn) in the fourth quarter of 2023.

BP said lower earnings reflected lower oil prices as well as the impact of operational outages on production and weaker profit margins in its fuels segment.

Murray Auchincloss, chief executive officer said: "We've delivered another resilient quarter financially and continued to make progress on our strategy."

Despite the fall in underlying profit and higher net debt, BP has announced another share buyback. The company said it has authorised a $1.75bn (£1.4bn) share buyback for the first quarter.

(c) 2024 City A.M., source Newspaper