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- BP PLC on Tuesday said it continued to ‘perform while transforming’ as second quarter profit jumped on stronger refining margins, though a Russia hit from earlier in the year ensured a weaker first-half bottom line.
Alongside the results, the energy major declared a $3.5 billion share buyback as net debt dropped to $22.82 billion at the end of June from $32.71 billion a year before.
Shares in BP were up 3.6% at 406.65 pence in London early Tuesday, making the stock the top performer in the FTSE 100 in morning trade.
By its preferred metric, BP's replacement cost more than trebled to $7.65 billion in the second quarter of 2022, from $2.38 billion a year earlier. On an underlying basis, RC profit was $8.45 billion, up from $2.80 billion. Pretax profit surged to $14.06 billion from $5.14 billion.
Total second-quarter revenue improved 85% to $69.51 billion from $37.60 billion.
BP swung to a first half loss, however. It posted a replacement cost loss of $15.40 billion, swinging from a profit of $5.71 billion a year earlier.
Profit was wiped out by a first quarter $24.4 billion post-tax charge related to BP's exit from its near 20% stake in Russian business Rosneft, following the invasion of Ukraine.
BP lifted its quarterly dividend by 10% to 6.006 cents per share from 5.460 cents a year prior. The first-half payout is up 7.1% to 11.466 cents.
It executed $2.3 billion worth of buybacks in the second quarter before completing the remainder of a $2.5 billion programme in late July.
What's more, BP plans to complete a $3.5 billion buyback before announcing third-quarter results, which are scheduled for November 1.
‘On average, based on BP's current forecasts, at around $60 per barrel Brent and subject to the board's discretion each quarter, BP continues to expect to be able to deliver share buybacks of around $4.0 billion per annum and have capacity for an annual increase in the dividend per ordinary share of around 4% through 2025,’ it said.
Brent traded at $99.71 a barrel early Tuesday, down from $100.70 late Monday.
Looking ahead, BP said it expects oil prices to remain elevated in the third quarter due to ongoing disruption to Russian energy supply.
Separately, BP and Eni Spa on Tuesday confirmed that Azule Energy, their new 50-50 Angola joint venture, has been officially established.
‘Combining our Angolan businesses and drawing on both bps and Enis expertise, it will continue to safely and efficiently develop Angolas resilient hydrocarbon resources and pursue new opportunities in oil and gas and other energies,’ said BP Chief Executive Bernard Looney.
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