Oil Giant Bp Ups Dividend And Confirms Share Buybacks As It Posts Better-Than-Expected Quarterly Profit

Latest Update- 31/12/2022

BP recorded an underlying profit of $8.5 billion triple the $2.8 billion it made during the same time last year and up from the $6.2 billion in the preceding quarter. In trading in London, where the corporation is headquartered it benefited by more than 3%.

According to the results the five largest Western oil companies—BP, Chevron, Exxon Mobil, Shell, and Total Energies—made a profit of almost $60 billion during the second quarter. The increase in profits came after this year's rise in the cost of crude oil, natural gas, and gasoline which was mostly brought on by Russia's invasion of Ukraine.

The first half of the year had seen the five energy giants invest an additional $25 billion on the purchase of their own shares which primarily benefits shareholders by boosting stock value. According to BP, it spent $3.9 billion on buybacks in the first half of the year and had $3.5 billion planned for the third quarter. The business said that it will use 60% of its surplus cash flow this year for share repurchases. Additionally, it increased the dividend by 10%.

On a phone with investors, BP's CEO Bernard Looney said now is not the time to give up discipline. The first thing to say is that we are careful not to be misled into thinking that this new world will always be this way since we are aware of the history of the sector.

BP wrote off about $25 billion in the value of its share in Rosneft Russia's state-controlled oil business, and other ventures. BP announced its exit from Russia in February. Analysts viewed that as a large paper loss with no impact on BP's future results.

The political pressure to expand output and reduce prices to customers has increased as a result of the energy companies' windfall profits. A special tax on the sector's exceptional profits has been announced by Britain, the home of BP and Shell and President Biden has accused oil giants of profiting off of rising energy prices.

Last Updated- 31/7/2021

Oil and gas BP beat 2nd quarter earning expectations while expanding its dividend and share buyback program. The dividend is increased by 4% to 5.46% per share. Buybacks of around $1 billion per quarter are anticipated and an annual dividend increase of 4% through 2025, based on an estimated average oil price of $60 per barrel a combination of strong underlying performance, an improving balance sheet, and higher commodity prices had enabled the company to up its returns to shareholders. The energy majors seek to reassure investors that they have gained a more stable footing amid the ongoing coronavirus pandemic. The company also upped its production guidance in the third quarter and ramped up major projects. It comes after a 12-month period which BP has described as “a year like no other” for global energy markets.