BP, despite a drop in profits in the fourth quarter of 2023, will invest additional billions in share buybacks. The British oil company announced this on Tuesday while presenting its financial results.

In the first half of the current year, the company plans to acquire its own securities valued at 3.5 billion US dollars (3.25 billion euros). The pace of stock buybacks is to be maintained until the end of 2023.

Despite special effects that weighed on profits in the fourth quarter, BP performed better than analysts expected on an adjusted basis. The new CEO Murray Auchincloss emphasized that he wants to "increase long-term value for our shareholders."

In the fourth quarter of 2023, BP had to report a profit decline of 371 million dollars due to impairments, including on commodity-related financial instruments. The previous year, the company had reported a profit of 10.8 billion dollars.

However, a net profit of $2.99 billion remained after adjustments.

The quarterly dividend is set to increase by 10 percent to 7.27 cents per share. Other major oil companies such as Chevron, ExxonMobil, and Shell also reported a decline in profits for the fourth quarter of 2023, however, they also performed better than experts had anticipated.

The publication of the results marks the end of several turbulent months for BP, characterized by the resignation of the former company leader Bernard Looney, speculation about a possible takeover, and the demand from activist investor Bluebell Capital Partners to invest in renewable energy.

For the full year 2023, BP expects a profit of 15.2 billion dollars for its shareholders, after a loss of 2.5 billion dollars in the previous year due to write-downs on its stake in the Russian oil company Rosneft.

However, after adjustments, a profit of 13.8 billion dollars remained, compared to 27.7 billion in the previous year.

The oil and gas industry benefited in 2022 from the price increase of raw materials triggered by Russia's war against Ukraine.

The effect, however, has normalized by now. BP has announced to invest 16 billion dollars this year and the next, compared to the previous medium-term target of between 14 and 18 billion.

Additionally, the company plans to return at least 80 percent of the excess cash flow to shareholders, compared to the previous target of 60 percent. On the London Stock Exchange, BP shares rose by as much as 5.23 percent to 478.45 pence.