- Extends share buyback programme
- $2.8 billion second quarter profit
- 10% increase in dividend per ordinary share to 8 cents
Shares in BP (BP.) were up over 2% in morning trading to 465p after the oil giant's second quarter profit came in ahead of market expectations.
The company reported a second quarter underlying replacement cost profit of $2.8 billion reflecting an average gas marketing and trading result, significantly lower realized refining margins, stronger fuels margins and lower taxation.
BP said it generated strong operating cash flow of $8.1 billion which helped to reduce net debt to $22.6 billion.
MORE SHARE BUYBACKS
Separately the oil giant also announced a $1.75 billion share buyback programme for the second half of 2024.
The company said: ‘Furthermore, BP is committed to announcing $3.5 billion for the second half of 2024. At current market conditions and subject to maintaining a strong investment grade credit rating, BP plans share buybacks of at least $14 billion through 2025 as part of our commitment, on a point forward basis, to returning at least 80% of surplus cash flow to shareholders.’
EXPERT VIEW
Andrew Keen, managing director at Edison commented: ‘BP’s second-quarter results come as the company seeks to rebuild investor confidence in its strategy and facing headwinds as it pauses renewable projects to cut costs and maintain share buybacks in an effort to and boost returns.
‘BP maintains its expectation of slightly higher upstream production compared to 2023, with growth in oil production and operations offsetting lower output from gas and low carbon energy.’
Paul Marino, chief revenue officer at GraniteShares said BP’s share price has been flat this year after a bump in early spring was erased.
Marino added: ‘Investors will be eager to see updates on production and trading, the prospects for higher production, and better margins are ahead in the second half of 2024.’
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Disclaimer: The author (Sabuhi Gard) owns shares in BP.
