BP Stock Falls Premarket As Q1 Profit Halves On Weak Gas Trading Results: Retail Mood Dampens

BP Plc's (BP) U.S.-listed shares fell 4.5% in premarket trade on Tuesday after the company's first-quarter profit dropped nearly 50% due to weak gas trading results.

The London-based energy company reported an underlying replacement cost profit of $1.38 billion for the quarter ended March 31, compared with $2.72 billion a year earlier.

The company is undergoing a strategic reset after several years of underperformance. Its chair, Helge Lund, said earlier this month that he would step down sometime in 2026.

The oil major said in February that it would raise its investment in oil and gas to $10 billion per year and lift production to 2.3 million to 2.5 million boe/d by 2030.

BP reported an average first-quarter production of 1.48 million boe/d compared with 1.46 million boe/d in the year-ago quarter. 

Reuters reported that BP's sustainability chief, Giulia Chierchia, would step down on June 1.

Activist investor Elliott Investment Management, which unveiled a stake of about 5% in the company this year, reportedly wanted Chierchia's ouster to focus on spending cuts and improving cash flow.

BP's net debt was $27 billion at the end of the first quarter, compared with $23 billion at the end of the fourth quarter.

BP expects its second-quarter upstream production to be broadly flat compared with the first quarter.

The company also said it expects divestment and other proceeds to be around $3 billion to $4 billion in 2025, with the majority weighted towards the second half.

Retail sentiment on Stocktwits was in the 'extremely bearish' (19/100) territory on Monday, compared to 'bearish' (44/100) a day ago, while retail chatter was 'normal.'

BP shares have fallen 1.9% year to date (YTD).

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