BP shareholders will be looking for answers about its planned transition away from fossil fuels when it reports first-quarter results on Tuesday.
Earlier this year, the energy giant scaled back its plans to cut oil and gas production by 40 percent by 2030, indicating it is targeting a 25 percent reduction.
Shareholders “continue to wrestle with BP’s strategy on how to best position itself for the global shift away from hydrocarbons and toward renewable energy,” they added.
The stock has been on a “roller coaster” over the past year, analysts at brokerage AJ Bell said, amid oil price volatility and the resignation of disgraced former CEO Bernard Looney over his relationship. with his colleagues.
Looney first laid out BP’s radical net-zero plans in 2020, since then its stock has lagged its peers.
That moderate valuation could mean it will face questions about re-listing in New York – something rival Shell has openly flirted with recently – according to analyst Biraj Borkhataria at RBC Bank.
Analysts expect underlying replacement cost profits at BP to fall to £2.3 billion during the first quarter, down from £4 billion a year ago. They pointed to lower profits in the refinery and gas station business.
Shares fell 1.1 per cent to 510.4 pence.