1st Aug 2023 08:53
(Alliance News) - BP PLC on Tuesday announced a USD1.5 billion share buyback programme and raised its dividend as it posted an interim swing to a profit.
Second quarter attributable profit came in at USD1.79 billion, down considerably from USD9.26 billion a year earlier and from USD8.22 billion in the first quarter of 2023. However, in the first half of 2023, it swung to a profit of USD10.01 billion from a loss of USD11.13 billion a year prior.
Underlying replacement cost profit in the quarter fell to USD2.59 billion, down from USD8.45 billion year-on-year and USD4.96 billion in quarter one.
The average realised price for oil was USD70.40 per barrel of oil in the first half of 2023, down 23% from USD92.00 a year ago and 12% lower than what BP said was the average oil market price of USD79.66 per barrel.
The oil major declared a second quarter dividend of 7.27 US cents, up 10% from 6.61 cents a year ago. This brings the half-year dividend to 13.88 US cents, up 21% from 11.466 cents a year ago.
BP said the second quarter was resilient with good cash delivery amid turnaround activity and weak refining margins.
It also announced that a new share buyback programme will be completed before reporting third quarter results. The buyback will be for a further USD1.5 billion shares, down slightly from the USD1.75 billion share buyback just completed.
Looking ahead, BP said it expected reported and underlying upstream production in 2023 to be higher than in 2022, amid USD4.0 billion per year in buybacks.
The company was optimistic to be supported by seasonal demand and output restrictions by OPEC+ countries in the third quarter.
Further, in the third quarter the company anticipates industry refining margins to stay above historical average levels, boosted by seasonal demand in the US and due to low product inventories.
BP shares were 2.1% higher at 493.20 pence each in London on Tuesday morning.
By Tom Budszus, Alliance News reporter
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