BP's stock has remained flat this year, currently priced at around $35 per share. The company's Q1 2024 underlying replacement cost profit was down by almost half compared to the year-ago quarter, mainly due to lower commodity market prices, a prolonged refinery outage, and weakened fuel margins. Despite weak Q1 profits, BP announced a $1.75 billion share buyback for the first quarter and plans to buy back shares worth at least $14 billion by 2025. BP's net debt grew to $24 billion, and it plans to cut at least $2 billion in costs by the end of 2026.
BP stock has seen strong gains in the past three years but underperformed the S&P 500 in 2023. For the full year 2024, BP expects slightly higher reported and underlying upstream production compared to 2023. The company also invests heavily in charging stations, biofuels, hydrogen fuels, and fueling stations, aiming to be a net-zero company by 2050 or earlier. BP's stock appears cheap at current levels, with a valuation at a 15% premium from the current market price. [609e34d4]