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BP steps up cost cutting as profits slide
| United Kingdom | general

BP steps up cost cutting as profits slide

#BP #Share buybacks #Profit margin #Murray Auchincloss #Cost cutting #Oil and Gas #Financial results

📌 Key Takeaways

  • BP is intensifying its cost-cutting efforts in response to a sharp decline in quarterly profits.
  • The company has officially suspended its share buyback program to preserve capital.
  • These financial adjustments occur just as Murray Auchincloss prepares to take the helm as the new CEO.
  • Lower energy prices and compressed refining margins are the primary drivers behind the profit slump.

📖 Full Retelling

British energy giant BP announced an aggressive expansion of its cost-cutting measures and a suspension of its share buyback program in London on Tuesday, following a significant slide in quarterly profits and ahead of a leadership transition. The company’s financial strategy shift comes as it prepares for the arrival of its new Chief Executive, Murray Auchincloss, while grappling with volatile energy prices and narrowing refining margins that have pressured its bottom line. The decision to halt the return of capital to shareholders marks a pivot from the company's previous stance of aggressive buybacks, signaling a more conservative approach to liquidity management.

🏷️ Themes

Corporate Finance, Energy Sector, Executive Leadership

📚 Related People & Topics

Cost reduction

Process used by organisations to reduce costs

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Share repurchase

Reacquisition by a company of its own shares

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Profit margin

Ratio between turnover and profit

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BP

BP

British multinational oil and gas company

BP p.l.c. is a British multinational oil and gas company headquartered in London, England. It is one of the oil and gas "supermajors" and one of the world's largest companies measured by revenues and profits.

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Murray Auchincloss

Canadian businessman (born 1970)

Murray Michael Auchincloss (born 1970) is a Canadian business executive who was the chief executive of BP from January 2024 to December 2025.

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