British oil company BP announces massive share buybacks despite slumping profits - analysis and outlook

British oil company BP announces massive share buybacks despite slumping profits - analysis and outlook

According to a report by www.finanzen.net, the British oil company BP plans to invest billions more in share buybacks despite a slump in profits in the final quarter of 2023. In the first half of the current year, it plans to acquire its own securities for $3.5 billion, and the company intends to maintain this pace until the end of next year. Although special items impacted profit in the final quarter of 2023, the company performed better on an adjusted basis than analysts expected. It is emphasized that the long-term value for shareholders should be increased. Despite the profit slump, BP plans to invest $16 billion in share buybacks and return at least 80 percent of excess cash to shareholders.

Against this backdrop, BP's announcement that it will pour billions more into share buybacks is expected to boost shareholder returns. The increased buybacks could increase demand for BP shares and therefore increase their value. This could have a positive impact on the market as rising stock values ​​can boost investor confidence and strengthen the entire industry.

However, it should be noted that the decline in profits and the planned share buybacks may have an impact on the company's long-term financial stability and competitiveness. The long-term impact of this move by BP should be closely monitored and analyzed as it may also affect competition in the oil and energy industries.