bp has posted underlying replacement cost profit, the company’s definition of net income, of $4.96bn (£3.96bn) for the first quarter of 2023, down 20% compared with $6.24bn a year ago.

The British energy giant noted that profits dropped due to lower energy prices compared with the same period in 2022.

The company’s profit for the period attributable to shareholders totalled $8.2bn, as against a loss of $20.4bn last year.

Last year, the company suffered massive losses due to its exit from Russian business. It reported a pre-tax charge of $25.5bn from abandoning its 19.75% stake in energy group Rosneft.

bp’s operating cash flow for the quarter declined to $7.62bn from $8.21bn in the first quarter of 2022.

The company announced plans to repurchase $1.75bn worth of shares over the next three months, down from $2.75bn in the previous quarter.

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By GlobalData

Furthermore, the British oil giant expects to pay $1bn under the country’s new windfall tax on the oil and gas sector.

During the quarter, bp concluded buyback of shares worth $225m as part of the $675m programme announced in February 2023.

The company also revealed that its net debt fell to $21.2bn at the end of the first quarter.

Commenting on the performance, CEO Bernard Looney said: “This has been a quarter of strong performance and strategic delivery as we continue to focus on safe and reliable operations.

“Momentum continues to build across our integrated energy company strategy, with the start-up of Mad Dog Phase 2, our agreement to acquire TravelCenters of America and progress towards hydrogen and CCS projects in the UK. And importantly we continue to deliver for shareholders through disciplined investment, lowering net debt and growing distributions.”