Panoramic view of the BP sign and petrol station forecourt sign in Southend, UK, January 22, 2024.
John Keble | Getty Images News | Getty Images
British oil giant blood pressure It reported stronger-than-expected second-quarter net profit on Tuesday and raised its dividend despite earlier warnings of a sharp decline in refining margins.
The oil and gas giant reported second-quarter underlying replacement cost earnings, used as a proxy for net income, of $2.8 billion. That beat analysts’ expectations of $2.6 billion, according to consensus compiled by LSEG.
BP reported net profit of $2.7 billion the first three months of this year and $2.6 billion Season 2, 2023.
The energy company announced a 10% increase in its dividend to 8 cents per share from 7.27 cents. It also maintained its stock repurchase program for the next three months at $1.75 billion.
BP Chief Financial Officer Kate Thomson said on Tuesday the company’s decision to boost shareholder returns “reflects our confidence in our performance and cash generation prospects”.
blood pressure explain Earlier this month, weaker refining profits and lower oil trading results could knock as much as $700 million off the company’s second-quarter results. The company on Tuesday confirmed a $1.5 billion writedown, in part due to plans to reduce refining operations at its Gelsenkirchen plant in Germany.
“We are driving focus and cost reduction across the business while building momentum towards our 2025 ambitions,” BP Chief Executive Murray Auchincloss said in a statement.
“Our recent advancement of the Kaskida development business in the Gulf of Mexico and our decision to fully own bp Bunge Bioenergia while scaling back plans for new biofuel projects demonstrates our commitment to creating a simpler, more focused and higher value project company,” he added.
As of the end of the second quarter, BP’s net debt was $22.6 billion, down from $23.7 billion a year earlier.
Shares of the London-listed company were up 1.9% on Tuesday morning.
BP shares are down about 2.8% year to date. By comparison, UK rivals’ share prices shell Up nearly 8% year to date, shares of U.S. oil majors Exxon Mobil An increase of more than 16%.
investor confidence
BP’s second-quarter results come as the company seeks to rebuild investor confidence in its strategy.
Analysts at RBC Capital Markets said BP reported “resilient” second-quarter earnings “primarily due to a lower-than-expected tax rate that led to a modest profit increase.”
They added that BP’s dividend growth exceeded market expectations, while the reduction in net debt “should be welcomed” as rising net debt has been seen as an issue for BP’s investment case.
In recent months, BP under pressure Activist investor Bluebell Capital Partners has ramped up its oil and gas investments and scaled back its green commitments.
Under the leadership of Bernard Rooney Resigned in September After less than four years on the job, BP has pledged to reduce overall emissions by 35% to 40% by the end of this decade.
The company was one of the first energy giants to announce a plan to cut emissions to net zero “by 2050 or sooner.” dilute These climate plans. BP said in strategy update last year Instead, it aims for cuts of 20% to 30%, citing the need for continued investment in oil and gas to meet demand.
Reuters report In late June, BP Chief Executive Murray Auchincloss froze hiring and suspended renewable energy projects as part of a cost-cutting plan to boost returns. BP said at the time that Auchincloss set out six priorities “to become a simpler, more focused and higher-value company.”
Shell is due to report second-quarter results on Thursday, while Exxon Mobil and Chevron Both sides are preparing to follow suit on Friday.
Norwegian oil and gas producers Statoil Wednesday report Second-quarter profit fell 4%, beating analysts’ expectations.
