The oil giant holds its annual general meeting in Aberdeen for the first time, amid climate change protests.Read more
Shareholders have overwhelmingly voted for a climate change resolution at the BP's AGM.
The resolution, which was proposed by a group of investors called Climate Action 100+, will mean the oil giant must set out a business strategy consistent with the goals of the Paris Agreement to keep global warming to well below 2 degrees centigrade.
Stephanie Pfeifer, a member of the global Climate Action 100+ steering committee, said investors "will pay close attention to how it addresses emissions across its full value chain and expect to see clear evidence that any future material capex investment is consistent with the goals of the Paris Agreement."
BP will face pressure at a meeting next week to set tougher targets to combat climate change, the latest signal from investors that they want the oil and gas industry to do more to clean up its act.
After BP’s 2018 carbon emissions rose to their highest in six years, the oil giant is being lobbied by activists and an increasing number of shareholders to ensure its operations are in line with goals set by the 2015 Paris climate deal to curb global warming.
BP has already backed a resolution being put to investors on Tuesday for it to be more transparent about its emissions, link executive pay to reducing emissions from BP’s operations and show how future investments meet Paris goals.
The motion, proposed by BP and a group of 58 shareholders holding 10 percent of its shares, known as Climate Action 100+, is expected to pass at BP’s annual meeting in Aberdeen.
But some investors want BP to go further and follow the lead of rival Royal Dutch Shell, which bowed to years of lobbying and set the toughest industry targets for cutting greenhouse gas emissions.
The rise in oil prices amid tensions in the Middle East has lifted the shares of UK oil majors BP and Shell.
Shares in both companies are up by about 1.4% so far today.
However, the increase has failed to lift the wider market, with the FTSE 100 index barely changed at 7,202.05.
Vodafone is one of the shares weighing on the market. The mobile phone network has dropped 4% following a report that the company could be about to cut its dividend.
Richard Hunter, head of markets at interactive investor, comments on BP's latest results.
"BP may not have repeated its immense performance from the full year numbers in February, but nonetheless remains on track to deliver on its strategic promises.
"The company’s prodigious cash flow continues to enable its share buyback programme, which will ramp up further in the second half of the year. Meanwhile, there is also an increase to the dividend in the quarter, which will add to an already attractive yield of 5.6%.
"The company now has operational control of BHP, which should lead to the synergies previously identified in due course, while the more recent strength in the oil price, which should filter through in the second quarter, will further bolster the numbers."
However, he notes that revenues dipped slightly for the quarter, "and the Gulf of Mexico spill is not yet ready to be consigned to the history books, with another £600m of payments made in the quarter".
Oil giant BP has reported a drop in first quarter profits.
Underlying replacement cost profit for the first three months of 2019 was $2.4bn, down from $2.6bn a year earlier.
The company said the the fall "reflected the weaker price and margin environment at the start of the quarter, partially offset by strong supply and trading results".
Despite the fall, the profit figure was higher than analysts' expectations.
BP chief executive Bob Dudley said the company's performance during the quarter "demonstrates the strength of our strategy".
"With solid Upstream and Downstream delivery and strong trading results, we produced resilient earnings and cash flow through a volatile period that began with weak market conditions and included significant turnarounds."
BP boss Bob Dudley took home £11.2m in pay last year after the energy giant more than doubled profits to $12.7bn on the back of rising oil prices.
The group's annual report shows Mr Dudley in 2018 was paid a £1.4m salary, an annual bonus of £646,000 and £8.4m in performance shares.
However, his total take home pay could have been £2m higher had BP's remuneration committee not used its "discretion" to apply a more demanding new policy to his share award.
In addition, Mr Dudley requested that he receive a reduced payout under BP's long term incentive plan.
His pay last year compares with £11.6m received in 2017, which was revised up due to changes in BP's share price.
Mr Dudley faced a shareholder revolt in 2016 when in a non-binding vote 59% rejected a 20% pay rise that took his earnings to £14m.
The oil giant was then forced to propose a new "simpler and more transparent" pay deal that would mean "lower levels of reward" as it looked to fend off further investor revolts.