bp has reported a profit of $3 billion in the fourth-quarter 2023 results, surpassing forecasts due to strong gas trading.

bp’s underlying replacement cost profit and the company’s net income reached $2.99 billion, exceeding forecasts of $2.77 billion in a company-provided survey of analysts. This was a decrease from the third quarter’s $3.3 billion profit and the previous year’s $4.8 billion profit.

The strong quarterly results were driven by robust gas trading and higher oil and gas prices, which contributed to the company’s 2023 profit of $13.8 billion. However, these gains were offset by significantly lower refining margins, weak oil trading, and exploration impairments, according to bp’s recent statement.

bp announced a dividend per ordinary share of 7.27 cents for the final three months of 2023, marking a 10% increase compared to the same period in the previous year.

The company also announced its commitment to repurchase $3.5 billion of shares in the first half of 2024 and expects to purchase $14 billion over 2024–2025.

bp’s capital expenditure for 2023 remains unchanged at $16.3 billion and is expected to decrease to $16 billion this year and next.

The company generated over $32 billion in cash last year, compared to $41 billion in 2022, and reduced its net debt to $20.9 billion by the end of the year, the lowest in a decade.

“Looking back, 2023 was a year of strong operational performance with real momentum in delivery right across the business. And as we look ahead, our destination remains unchanged—from IOC to IEC—focused on growing the value of bp,” said Murray Auchincloss, BP’s chief executive officer.

“We are confident in our strategy to deliver as a simpler, more focused, and higher-value company and committed to growing long-term value for our shareholders,” Auchincloss added.

In hydrocarbons, bp announced the start-up of a major Seagull project, which is expected to add approximately 15,000 barrels of oil equivalent per day (boe/d) to net production by 2025.

In low-carbon energy, bp has agreed to acquire the 50.03% stake it does not already own in Lightsource bp, one of the world’s leading developers and operators of utility-scale solar and battery storage assets, which is expected to be completed in the second half of 2024., subject to regulatory approvals.

In November, bp announced that it would expand the use of generative AI through the use of Copilot for Microsoft 365.