Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

BP Shares Rise After Dividend Increase, Q2 Profit Beat

Stock Markets Aug 02, 2022 03:53AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
BP
+1.11%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BP
+1.67%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TFMBMc1
+0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Scott Kanowsky 

Investing.com -- London-listed shares in BP PLC (LON:BP) jumped by more than 3% on Tuesday after the British energy giant reported a surge in second-quarter earnings to a 14-year high and increased its dividend.

Underlying replacement cost profit, the company's definition of net income, attributable to shareholders rose to $8.45 billion, up from nearly $6.2 billion during the prior three-month period and well above analyst estimates of $6.8 billion. BP credited the uptick to solid refining margins and strong oil trading performance, along with a recent spike in oil prices.

The result offset disappointing gas trading and a rise in costs related to the recent shutdown of the Freeport liquefied natural gas export plant in Texas.

"BP continues to build a track record of delivery against its disciplined financial frame, which remains unchanged," said chief financial officer Murray Auchincloss in a statement.

BP raised its dividend by 10% to 6.006, up from its previous promise to deliver an annual dividend increase of around 4%. The company also vowed to buyback $3.5 billion in shares during the second quarter after repurchasing about $4.1 billion in the first six months of the year.

"For 2022 and subject to maintaining a strong investment grade credit rating, BP remains committed to using 60% of surplus cash flow for share buybacks and intends to allocate the remaining 40% to further strengthen the balance sheet," BP said.

BP slashed its dividend in half in July 2020 as it dealt with the fallout from the onset of the pandemic, but has since pledged to raise it by 4% annually.

Undergirding this announcement was BP's outlook for energy prices, which have been boosted recently by a post-pandemic rebound in demand and disruptions to the global supply partly stemming from Russia's invasion of Ukraine.

The group said it now expects oil prices to "remain elevated" in the third quarter as these factors lead to reduced levels of spare capacity and lower inventories. Gas price volatility is also estimated to rise as Europe struggles to make up for disruptions in key Russian pipeline flows.

BP added that refining margins, or the difference between the price of crude and refined products, will also get a lift from ongoing supply delays.

 
BP Shares Rise After Dividend Increase, Q2 Profit Beat
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Pavle Rusmir
Pavle Rusmir Aug 02, 2022 6:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
oomg
Sylvia Doloff
Sylvia Doloff Aug 02, 2022 5:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
get ready Pelosi is about really ruin everything and if I am thinking it I must not be the only one her Taiwan meeting is going to fo m ire than start a war it will ruin the Chinese markets and our market brace yourselves
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email