A normal view of the BP brand and petrol station forecourt signal on January 22, 2024 in Southend, United Kingdom.
John Keeble | Getty Photos Information | Getty Photos
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British oil large BP on Tuesday reported stronger-than-expected web revenue for the second quarter and raised its dividend regardless of beforehand warning of considerably decrease refining margins.
The oil and gasoline main posted underlying substitute value revenue, used as a proxy for web revenue, of $2.8 billion for the second quarter. That beat analyst expectations of $2.6 billion, in line with an LSEG-compiled consensus.
BP reported web revenue of $2.7 billion for the primary three months of the yr and $2.6 billion for the second quarter of 2023.
The power agency introduced it had elevated its dividend by 10% to eight cents per share, up from 7.27 cents. It additionally maintained the speed of its share buyback program at $1.75 billion over the following three months.
Kate Thomson, chief monetary officer at BP, mentioned Tuesday that the agency’s resolution to spice up shareholder returns “displays the boldness we’ve in our efficiency and outlook for money era.”
BP mentioned earlier within the month that weak refining margins and decrease oil buying and selling outcomes would doubtless dent the agency’s second-quarter outcomes by as a lot as $700 million. The agency on Tuesday confirmed a writedown of $1.5 billion, partly because of a plan to cut back refinery operations at its Gelsenkirchen plant in Germany.
“We’re driving focus throughout the enterprise and decreasing prices, all whereas constructing momentum in our drive to 2025,” BP CEO Murray Auchincloss mentioned in a press release.
“Our latest go-ahead of the Kaskida growth within the Gulf of Mexico enterprise, and resolution to take full possession of bp Bunge Bioenergia whereas scaling again plans for brand spanking new biofuels tasks, reveal our dedication to delivering as an easier, extra centered and better worth firm,” he added.
BP’s web debt stood at $22.6 billion on the finish of the second quarter, down from $23.7 billion in comparison with the identical interval final yr.
Investor confidence
Shares of the London-listed firm are down roughly 2.8% year-to-date.
By comparability, shares of British rival Shell have climbed almost 8% thus far this yr, whereas shares of U.S. oil large Exxon Mobil have jumped greater than 16%.
BP’s second-quarter outcomes come as the corporate seeks to rebuild investor confidence in its technique. The agency has come below stress from activist investor Bluebell Capital Companions to ramp up its oil and gasoline investments and cut back on inexperienced pledges.
Beneath the management of Bernard Looney, who resigned in September after lower than 4 years on the job, BP had promised that its total emissions could be 35% to 40% decrease by the tip of the last decade.
The agency, which was one of many first power giants to announce plans to chop emissions to web zero “by 2050 or sooner,” has since watered down these local weather plans. BP mentioned in a method replace final yr that it will as a substitute goal a 20% to 30% minimize, noting that it wanted to maintain investing in oil and gasoline to fulfill demand.
Reuters reported in late June that BP CEO Murray Auchincloss had imposed a hiring freeze and paused renewables tasks as a part of a cost-cutting plan to spice up returns. BP mentioned on the time that Auchincloss had launched six priorities “to ship as an easier, extra centered and better worth firm.”
Shell is scheduled to report second-quarter outcomes on Thursday, with Exxon Mobil and Chevron each poised to comply with swimsuit on Friday.
Norwegian oil and gasoline producer Equinor on Wednesday reported a 4% drop in second-quarter income, outperforming analyst expectations.
