BP Stock: Q4 Profits Plunge Amid Strategic Updates

BP's fourth-quarter 2024 financial results reveal significant headwinds, with quarterly profits dropping 61% to $1.17 billion compared to the previous year. The energy giant's annual profit also declined by 36% to $8.9 billion, primarily due to lower oil prices and reduced refinery margins. Despite these challenges, Goldman Sachs has raised its price target for BP shares from 515 to 530 pence, reflecting continued analyst optimism. The company's performance shows mixed signals, with revenue decreasing by 15.06% to £35.70 billion in the latest quarter, while net debt increased by 10% to nearly $23 billion.

Shareholder Returns and Strategic Direction

In response to the challenging environment, BP maintains its commitment to shareholder value, announcing a $1.75 billion share buyback program while maintaining its dividend at 8 cents per share. The company's strategic focus remains on optimizing cash flow and returns, with analysts maintaining an average price target of £5.19, suggesting potential upside from current trading levels. Looking ahead, analysts project earnings per share of $0.597 for 2025, indicating confidence in the company's future performance despite current market pressures.