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BP, which in 2020 set out its ambition to become a net zero company “by 2050 or sooner,” has drawn sharp criticism for scaling back its emission reduction targets in the wake of record profits.

Matt Cardy | Getty Images News | Getty Images

LONDON — Oil major BP on Tuesday reported stronger-than-expected first-quarter profits, rising from the previous three months but down from the exceptional levels it recorded through a blockbuster 2022 when fossil fuel prices surged following Russia’s full-scale invasion of Ukraine.

The British energy giant posted underlying replacement cost profit, used as a proxy for net profit, of $4.96 billion for the first quarter.

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That compared with a profit of $4.8 billion in the fourth quarter and $6.2 billion for the first quarter of 2022. Analysts had expected BP to report first-quarter profit of $4.3 billion, according to Refinitiv.

BP said its first-quarter earnings reflected robust oil and gas trading. It announced a further share buyback of $1.75 billion, which it expects to complete prior to announcing its second-quarter 2023 results in early August. The group said it completed its previously announced $2.75 billion share buyback on April 28.

Shares of the London-listed stock fell over 5% during morning deals, slipping toward the bottom of the pan-European Stoxx 600 index.

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

“And importantly we continue to deliver for shareholders, through disciplined investment, lowering net debt and growing distributions,” he added.

BP said it expects to be able to deliver share buybacks of around $4 billion per year — which is at the lower end of its $14 billion to $18 billion capital expenditure range — and has the capacity for an annual increase in the dividend per ordinary share of roughly 4%.

BP’s dividend remained unchanged from the previous quarter at 6.61 cents per ordinary share, following a 10% increase in February.

The company reported first-quarter net debt of $21.2 billion, down from $27.5 billion when compared to the same period a year earlier.

The first-quarter results come after a year of whopping profits for Big Oil. Energy majors smashed previous annual records in 2022 during a period of volatile oil and gas prices.

For its part, BP posted annual profits of $27.7 billion last year — more than doubling profits recorded in 2021. The oil major’s previous annual profit record was $26.3 billion in 2008.

Shareholder revolt

Big Oil executives have since sought to defend their bumper profits amid a barrage of criticism, typically highlighting the importance of energy security in the transition away from fossil fuels and suggesting higher taxes could deter investment.

BP, which was one of the first energy giants to announce an ambition to reach net-zero emissions “by 2050 or sooner,” said in the wake of its annual record profits that it now plans to scale back its emission reduction targets.

The move set the scene for a contentious annual shareholder meeting last week, with analysts commenting that there was “clearly very deep frustration” among some of the U.K.’s biggest pension funds.

Indeed, a shareholder group of 17% — up from 15% last year, but down from as high as 21% in 2021 — voted in favor of a resolution put forward by Dutch group Follow This. The resolution called for the company to align its 2030 emissions reduction targets with the landmark Paris Agreement.

The burning of fossil fuels such as coal, oil and gas, is the chief driver of the climate emergency.

Last week, French oil major TotalEnergies kicked off Big Oil’s earnings season with first-quarter results in line with analyst expectations. The company reported a 27% drop in net income to $6.5 billion through the first three months of 2023, partly due to lower fossil fuel prices.

Britain’s Shell and Norway’s Equinor are both scheduled to report their quarterly earnings on Thursday.

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Podcast: Trump/GOP go after EV/solar, Tesla, Ford, GM EV sales, Electrek Formula Sun, and more

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Podcast: Trump/GOP go after EV/solar, Tesla, Ford, GM EV sales, Electrek Formula Sun, and more

In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Trump’s Big Beautiful bill becoming law and going after EVs and solar, Tesla, Ford, and GM EV sales, Electrek Formula Sun, and more

Today’s episode is brought to you by Bosch Mobility Aftermarket—A global leader and trusted provider of automotive aftermarket parts. To celebrate Amazon Prime Day July 8th through 11th, Bosch Mobility is offering exclusive savings on must-have auto parts and tools. Learn more here.

The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

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After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:

We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the podcast:

Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:

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Tesla prototype sparks speculation: a Model Y, maybe slightly smaller

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Tesla prototype sparks speculation: a Model Y, maybe slightly smaller

A new Tesla prototype was spotted again, reigniting speculation among Tesla shareholders, even though it’s likely just a Model Y, potentially a bit smaller, and the upcoming stripped-down, cheaper version.

Over the last few months, there have been several sightings of what appears to be a Model Y with camouflage around Tesla’s Fremont factory.

It sparked a lot of speculation about it being the new “affordable” compact Tesla vehicle.

There’s confusion in the Tesla community around Tesla’s upcoming “affordable” vehicles because CEO Elon Musk falsely denied a report last year about Tesla’s “$25,000” EV model being canceled.

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The facts are that Musk canceled two cheaper vehicles that Tesla was working on, commonly referred as “the $25,000 Tesla” in early 2024. Those vehicles were codenamed NV91 and NV92, and they were based on the new vehicle platform that Tesla is now reserving for the Cybercab.

Instead, Musk noticed that Tesla’s Model 3 and Model Y production lines were starting to be underutilized as the Company faced demand issues. Therefore, Tesla canceled the vehicles program based on the new platform and decided to build new vehicles on Model 3/Y platform using the same production lines.

We previously reported that these electric vehicles will likely look very similar to Model 3 and Model Y.

In recent months, several other media reports reinforced this, and Tesla all but confirmed it during its latest earnings call, when it stated that it is “limited in how different vehicles can be when built on the same production lines.”

Now, the same Tesla prototype has been spotted over the last few days, and it sent the Tesla shareholders community into a frenzy of speculations:

Electrek’s Take

As we have repeatedly reported over the last year, the new “affordable” Tesla “models” coming are basically only stripped-down Model 3 and Model Y vehicles.

They might end up being a little smaller by a few inches, and Tesla may use different model names, but they will be extremely similar.

If this is it, which is possible, you can see it looks almost exactly like a Model Y.

It’s hard to confirm if it’s indeed smaller because of the angle of the vehicle compared to the other Model Ys, but it’s not impossible that the wheelbase is a bit smaller – although it’s hard to confirm.

Either way, the most significant changes for these stripped-down, more affordable “models” are expected to be cheaper interior materials, like textile seats instead of vegan leather, no heated or ventilated seats standard, no rear screen, maybe even no double-panned acoustic glass and a lesser audio system.

As previously stated, the real goal of these new variants, or models, is to lower the average sale price in order to combat decreasing demand and maintain or increase the utilization rate of Tesla’s current production lines, which have been throttled down in the last few years to now about 60% utilization.

If this trend continues, Tesla would find itself in trouble and may even have to close its factories.

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Ethereum is powering Wall Street’s future. The crypto scene at Cannes shows how far it’s come

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Ethereum is powering Wall Street's future. The crypto scene at Cannes shows how far it's come

Ethereum succeeded beyond anyone's expectations, says network co-founder Vitalik Buterin at EthCC

CANNES — Wall Street’s new plumbing is being built on Ethereum and this week its architects took over the same French Riviera villas and red carpet venues that host the Cannes Film Festival in May.

The Ethereum Community Conference, or EthCC, took over the beachside town that was swarming with crypto founders, developers, and some of the institutional giants now building atop the infrastructure.

The crypto elite climbed the iconic red-carpeted steps of the Palais des Festivals — a cinematic landmark now repurposed as the stage for Ethereum’s flagship European event.

“The atmosphere this year was palpable in Cannes,” said Bettina Boon Falleur, the powerhouse behind EthCC for the past seven years. “The prestige of the location, combined with the quality of talks, has reinforced Ethereum’s stature and purpose in the wider ecosystem.”

Private parties sprawled across cliffside estates and exclusive resorts, but the conversations were less about price action and more about the blockchain’s evolving role as the back-end of global finance.

EthCC, now in its eighth year, has tracked Ethereum’s trajectory from scrappy experiment to institutional backbone.

“That impact was unmistakable this year,” Falleur said. “From Robinhood embracing decentralized finance infrastructure via Arbitrum to local governments like the City of Cannes exploring deeper integration with the crypto economy.”

Indeed, one of the boldest moves came this week from Robinhood, which became the first publicly traded U.S. company to launch tokenized stocks on-chain.

At a product showcase held inside a Belle Époque mansion overlooking the sea, Robinhood unveiled a sweeping new crypto strategy — including the ability for European users to trade tokenized U.S. stocks and ETFs via Arbitrum, a Layer 2 network built on Ethereum.

The announcement helped push Robinhood stock past $100 for the first time, capping off a week of fresh all-time highs and a more than 30% rally since being snubbed by the S&P 500 during a recent rebalance.

Inside the Palais des Festivals, ETHCC draws founders, developers, and institutions into the same halls that host the world’s biggest film premieres — this time, for the future of finance.

MacKenzie Sigalos

Ether, the token native to the Ethereum blockchain, was up nearly 6% on the week and several public equities tied to the blockchain have rallied alongside it.

BitMine Immersion Technologies, a company that mines bitcoin, gained more than 1,200% since announcing it would make ether its primary treasury reserve asset. Bit Digital, which recently exited bitcoin mining to “become a pure play” ethereum staking and treasury company, gained more than 34% this week. And SharpLink Gaming, which added more than $20 million in ether to its balance sheet this week, jumped more than 28% on Thursday.

Ether ETF inflows are rising again too — a sign that institutional investors are warming back up.

Ether is still down more than 20% this year and lags far behind bitcoin in market cap and adoption. But funds tracking ETH have seen two straight months of mostly net inflows, according to CoinGlass data. Still, ether ETFs total just $11 billion — compared to $138 billion in bitcoin ETFs.

Institutions aren’t betting on Ethereum for hype — they’re betting on infrastructure.

Even as prices stall and the network faces headwinds from slower base layer revenues and faster rivals like Solana, the momentum is shifting toward utility.

“Ethereum is getting plugged into these core transactional systems,” Paul Brody, global blockchain leader at EY, told CNBC on the sidelines of EthCC. “Investors, savers, people moving money — they are going to start shifting from some of the older mechanisms of doing this into Ethereum ecosystems that can do these transactions faster, cheaper, but also very importantly, with significant new functionality attached to it.”

Crypto founders and developers climb the iconic red-carpeted steps of the Palais des Festivals — a familiar backdrop for the Cannes Film Festival, now repurposed for Ethereum’s flagship European event.

MacKenzie Sigalos

Deutsche Bank recently announced it’s building a tokenization platform on zkSync — a faster, cheaper blockchain built on top of Ethereum — to help asset managers issue and manage tokenized funds, stablecoins, and other real-world assets while meeting regulatory and data protection requirements.

Coinbase and Kraken are also racing to own the crossover between traditional stocks and crypto.

Coinbase has filed with the SEC to offer trading in tokenized public equities, a move that would diversify its revenue stream and bring it into more direct competition with brokerages like Robinhood and eToro.

Kraken announced plans to offer 24/7 trading of U.S. stock tokens in select overseas markets.

BlackRock‘s tokenized money market fund, BUIDL — launched on Ethereum last year — offers qualified investors on-chain access to yield with redemptions settled in USDC in real time.

Stablecoins, meanwhile, continue to serve as the backbone of Ethereum’s financial layer.

Circle’s USDC — the second-largest stablecoin — still settles around 65% of its volume on Ethereum’s rails. According to CoinGecko’s latest “State of Stablecoins” report, Ethereum accounts for nearly 50% of stablecoin market share.

“The builders and contributors at EthCC aren’t chasing the next bull run,” Falleur said, “they’re laying the groundwork to make Ethereum home for the next billion users.”

Even as newer blockchains tout faster speeds and lower fees, Ethereum is proving its staying power as a trusted network.

Vitalik Buterin, Ethereum’s co-founder, told CNBC in Cannes that there is an assumption that institutions only care about scale and speed — but in practice, it’s the opposite.

Ethereum co-founder Vitalik Buterin delivers a keynote at ETHCC, laying out the network’s next steps — and its values test — as institutional adoption accelerates.

EthCC

“A lot of institutions basically tell us to our faces that they value Ethereum because it’s stable and dependable, because it doesn’t go down,” he said.

Buterin added that firms often ask about privacy and other long-term features — the kinds of concerns that institutions, he said, “really value.”

Tomasz Stańczak, the new co-executive director of the Ethereum Foundation, said institutions are choosing Ethereum for the same core reasons.

“Ten years without stopping for a moment. Ten years of upgrades, with a huge dedication to security and censorship resistance,” he said.

He added that when institutions send orders to the market, they want to be “absolutely sure that their order is treated fairly, that nobody has preference, that the transaction actually is executed at the time when it’s delivered.”

Those guarantees have become increasingly valuable as stablecoins and tokenized assets move into the mainstream.

The Senate’s recent passage of the GENIUS Act, along with Circle’s IPO, gave the industry a regulatory tailwind and helped reinforce Ethereum’s role as the infrastructure layer for tokenized finance.

Ethereum’s core values — neutrality, security, and censorship resistance — are emerging as competitive advantages.

The real test now is whether Ethereum can scale without losing its values.

“We don’t just want to succeed,” Buterin said from the mainstage of the Palais this week. “We want to be something that is worthy of succeeding.”

He said the hope is that future generations will look back and see a network that truly delivered openness, freedom, and permissionless access to the masses.

White-clad guests dance poolside at the rAAVE party in Cannes.

MacKenzie Sigalos

But the week didn’t end in the conference halls, it closed with tradition. On the balcony of Villa Montana, overlooking the Bay of Cannes, the rAAVE party lit up.

White-clad guests sipped cocktails as the DJ spun by the pool, haze curling from smoke machines.

This year, Chainlink co-founder Sergey Nazarov and DeFi icon Stani Kulechov, founder of Aave, stood atop the balcony overlooking the crowd and the light-dotted skyline of Cannes.

It was a fitting snapshot of the momentum behind Ethereum’s institutional rise and symbolic of Web3’s shift from niche experiment to financial mainstay.

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Robinhood CEO Vlad Tenev explains 'dual purpose' behind trading platform's new crypto offerings

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