BP plc (LON:BP)’s total second quarter revenue was 85% higher than last year to $69.5bn, driven by growth across all segments. That includes the benefit of higher energy prices. Underlying profit rose from $2.8bn to $8.5bn.
The group announce a dividend of 6.006 cents per share, 10% higher than last year. During the quarter, $2.3bn of share buybacks were executed and the $2.5bn buyback programme is now complete. A new, $3.5bn buyback is expected to complete prior to the announcement of third quarter results.
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The shares rose 3.6% following the announcement.
Matt Britzman, Equity Analyst at Hargreaves Lansdown
“BP’s expecting higher oil prices to continue into the third quarter and whilst that’s not good news for consumers, who are battling with higher energy and petrol prices already, it’s good news for cash flows. In the accommodative environment we’re seeing, BP’s able to push up its dividend and push on with a fresh $3.5bn buyback having only just finished a $2.5bn programme. Markets reacted favourably to what was a set of results that beat estimates across pretty much all metrics.
Longer term, BP’s still pumping cash into building out it’s renewables offering in a bid to capture a large slice of the growing low carbon and energy transition markets. Building out EV charging stations, offshore wind farms and taking stakes in hydrogen projects are all part of the plan. It’s a bigger move than peers have made, which adds some extra risk, but nonetheless is one that’s certainly commendable.”
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