British oil giant BP reported first-quarter net profit of $1.38 billion, falling short of analyst expectations of $1.6 billion. This figure is lower than the $2.7 billion reported a year earlier and $1.2 billion in the final quarter of 2024. The results come shortly after BP announced a strategic reset aimed at rebuilding investor confidence, which included slashing renewable spending and increasing investment in oil and gas.

CEO Murray Auchincloss stated the firm had a strong start in delivering on its strategic reset, citing record upstream operating efficiency, optimal refinery performance, six consecutive exploration discoveries, and the commencement of three major projects. For the first quarter, BP announced a dividend of 8 cents per ordinary share and a share buyback of $750 million. However, net debt increased to $26.97 billion, up from $22.99 billion at the end of the previous quarter. Shares of BP experienced a 3.3% decline on Tuesday morning and are down approximately 8% year-to-date.

BP's shift in green strategy has faced scrutiny, notably from activist investor Elliott Management, which has acquired a stake exceeding 5% in the company, making them the second-largest shareholder after BlackRock. This move has led to speculation that Elliott may push BP to refocus on its oil and gas businesses. Auchincloss declined to comment on interactions with investors regarding pressure to alter the company's plans further.

BP also faced a shareholder revolt at its recent annual general meeting, with nearly a quarter of investors voting against the re-election of outgoing Chair Helge Lund. Mark van Baal of Follow This expressed hope that Lund's successor will be climate competent and resistant to short-term activist pressures. Lund is expected to step down next year.

BP's underperformance compared to industry peers has led to speculation about a potential takeover. Auchincloss stated that BP is a strong, independent company with sector-leading growth and expressed confidence in its future performance. He also confirmed that the company has not requested protection from the British government against a takeover.

Oil prices have decreased recently due to demand concerns. International benchmark Brent crude futures traded at $65.19 per barrel on Tuesday morning, down from around $84 per barrel a year ago. Auchincloss stated that weaker crude prices would not jeopardize the firm's reset plans, as they have a balance of products including oil, natural gas, and refined products.