LONDON (Reuters) -BP missed forecasts on Tuesday with an underlying replacement cost profit of $1.38 billion for the first quarter, below the $1.53 billion expected by analysts in a company-provided poll.

BP bought back $750 million in shares, at the low end of its guided range, and announced plans to purchase a further $750 million worth this quarter.

It said it would spend $14.5 billion this year, around $500 million less than its previous guidance, and reiterated its $13-$15 billion target for next year and 2027.

Activist investor Elliott wants BP to boost its free cash flow through significant spending cuts and cost reductions, replace its strategy chief and create upstream and downstream units to clarify accountability, sources familiar with the matter have told Reuters.

Elliott has increased its stake in BP to just over 5%, placing it between top shareholders BlackRock and Vanguard, LSEG data shows.

In the first quarter last year, BP reported underlying replacement cost profit - its definition of adjusted net income - of $2.7 billion.