BP (NYSE:BP) shares climbed more than 5% pre-market today as the oil and gas giant exceeded Q4 profit expectations and announced an increase in share buybacks.

The company reported an adjusted EPS of 17.77 cents for the fourth quarter, a decline from 26.44 cents the previous year but above the 16.27 cents consensus estimate. Its adjusted net income fell 38% year-over-year to $2.99 billion, surpassing the anticipated $2.76 billion.

For the entire year, BP's underlying replacement cost profit was $13.8 billion, a sharp drop from the previous year's record $27.7 billion, slightly below the forecasted $13.9 billion.

BP set its total capital expenditure target at around $16 billion for the current fiscal year. The company also increased its quarterly dividend to 7.27 cents per ordinary share for Q4 2023, up 10% from the previous year.

Moreover, BP is speeding up its share repurchase program, planning to buy back $1.75 billion in shares before its Q1 earnings release, with a total of $3.5 billion in buybacks targeted for the first half of the year.