BP Stock: Profits Plunge 61% Amid Strategic Shift

British energy giant BP reported a significant decline in its financial performance for the fourth quarter of 2024, with profits dropping 61% to $1.17 billion compared to the same period last year. The annual profit similarly contracted by 36% to $8.9 billion, primarily due to falling oil prices and reduced refinery margins. The company's financial position faced additional pressure as net debt increased by 10% to nearly $23 billion year-over-year, while capital investments in fixed assets decreased by 21% to $3.7 billion in the final quarter.

Shareholder Returns Maintained Despite Challenges

Despite the deteriorating financial metrics, BP remains committed to shareholder value, announcing a $1.75 billion share buyback program and maintaining a dividend of 8 cents per share. The company's strategic direction is undergoing significant changes, with management focusing on optimizing cash flow and returns following recent involvement from activist investors. The stock showed modest weakness in early XETRA trading, trading well below its 52-week high of 5.41 GBP, though analysts suggest potential upside remains.