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The U.S. listed shares of BP (BP), the British energy giant, fell in premarket trade Tuesday after it reported lower-than-expected first-quarter earnings. It also reduced its stock-buyback program as economic uncertainty weighed on oil prices.
The company is refocusing its strategy away from low-carbon, as it invests in oil and natural gas.
Visible Alpha analysts polled estimated a $1.65 billion profit underlying replacement costs for BP. This is a sharp drop from the $1.38 billion reported. The underlying RC profit per ADS came in at $0.53, which was also below expectations. BP also reduced the share buyback from $1.75billion to $750m for the first three months.
"Following the introduction of global tariffs, and related government responses, there has been increased market volatility driven by rising concerns around the potential impact of a weaker economic outlook," BP CEO Murray Auchincloss said. "Commodity prices have softened as the market anticipates a potential reduction in demand for oil and gas, driven by economic uncertainty."
BP shares, already down by more than 25% in the past year and about 1.5% on Tuesday, dropped another 4% following the report.
