BP profits drop as it says it will reset strategy
Business Reporter
Getty ImagesOil giant BP said it will “fundamentally reset” its strategy as profits plummeted last year.
It is widely believed that later this month it will reduce renewable projects and increase oil and gas production after competitors, including Shell and Equinor, take similar actions.
BP’s net income fell to US$8.9 billion (£7.2 billion) in 2024, down from US$13.8 billion in the previous year.
It said lower oil and gas prices and lower profits at refineries have weakened how much it makes.
Five years ago, BP set a target of 50GW of renewable energy production by 2030.
Major changes in the strategy are expected to be abandoned on February 26.
BP has been scaled on renewable energy.
In December, it jointly ventured most of its offshore wind assets with Japanese company Jera in an attempt to separate it from the company’s core fossil fuel business and frozen new wind projects last June.
Aggressive shareholder Elliot Management bought a stake in BP to drive more investment in oil and gas.
There is a clear link between fossil fuel emissions and global warming.
But lately, oil and gas companies have been planning to increase production.
Last week, Norwegian energy giant Equinor said it would halve its investment in renewable energy over the next two years while increasing oil and gas production.
CEO Anders Opedal said the transition to reducing carbon energy is slower than expected, with increased costs and customers reluctant to commit to long-term contracts.
In December, Shell withdrew from new offshore venture capital.
