BP Signals Weaker Fourth-Quarter Earnings: Retail Sentiment Sours

U.S.-listed shares of BP fell 1% on Tuesday after the company flagged lower fourth-quarter production and weaker earnings due to lower commodity prices.

The London-based energy major said weak margins would cut its refining earnings between $100 million and $300 million compared to the third quarter of 2024.

Global refining margins have been hit by weak demand in China and a rise in refining capacity.

BP said lower realizations in its oil production and operations segment could result in a profit fall of up to $400 million.

The company noted that benchmark Brent crude prices averaged $74.73/barrel in the fourth quarter of 2024 compared to $80.34/barrel in the third quarter.

However, higher gas prices could help lift its earnings in the gas and low-carbon energy segment to $200 million.

BP also postponed its capital markets event, initially scheduled for Feb. 11, till Feb. 26 as CEO Murray Auchincloss had undergone a planned medical procedure.

The company said Auchincloss will be back in office in February to participate in the capital markets event in London.

Retail sentiment on Stocktwits dipped further into the ‘bearish’(38/100) territory.

One Stocktwits user suggested the shares could fall further by the end of the month.

Other western oil majors, including Shell and Exxon Mobil, signaled weaker fourth-quarter results earlier this month.

BP is down 9.4% over the past year.

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