Trending: BP's 1Q Share Buyback Leaves Investors Gloomy Despite Strong Results

1043 GMT - BP PLC is among the most mentioned companies across news items over the past five hours, according to Factiva data. The energy giant reported a strong set of first-quarter results from trading oil and gas on Tuesday, beating market expectations, and said it would buyback a further $1.75 billion in stock, though shares fell in morning trading. The company's underlying replacement-cost profit of $4.96 billion beat the $4.27 billion average, forecast by 25 analysts in a survey compiled by the company. However, the scale of the share buyback appears to have disappointed investors, according to analysts like RBC Capital Market's Biraj Borkhataria, who said in a research note the company's forecast for higher maintenance costs from oil-and-gas production and lower refining margins could weaken its cash flow. The disappointing buyback total, and accompanying guidance around further returns also hints at the longer-term challenge facing the company, as it looks to balance investing in the energy transition while still doling out plenty of cash to keep investors happy, AJ Bell investment director Russ Mould says in a market comment. Shares at 1038 GMT were down 27.7 pence, or 5.2% at 506.7 pence. Dow Jones & Co. owns Factiva. ([e-mail])

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May 02, 2023 06:58 ET (10:58 GMT)

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