2nd Aug 2022 08:38
(Alliance News) - 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 USD3.5 billion share buyback as net debt dropped to USD22.82 billion at the end of June from USD32.71 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 USD7.65 billion in the second quarter of 2022, from USD2.38 billion a year earlier. On an underlying basis, RC profit was USD8.45 billion, up from USD2.80 billion. Pretax profit surged to USD14.06 billion from USD5.14 billion.
Total second-quarter revenue improved 85% to USD69.51 billion from USD37.60 billion.
BP swung to a first half loss, however. It posted a replacement cost loss of USD15.40 billion, swinging from a profit of USD5.71 billion a year earlier.
Profit was wiped out by a first quarter USD24.4 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 USD2.3 billion worth of buybacks in the second quarter before completing the remainder of a USD2.5 billion programme in late July.
What's more, BP plans to complete a USD3.5 billion buyback before announcing third-quarter results, which are scheduled for November 1.
"On average, based on BP's current forecasts, at around USD60 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 USD4.0 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 USD99.71 a barrel early Tuesday, down from USD100.70 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 bp’s and Eni’s expertise, it will continue to safely and efficiently develop Angola’s resilient hydrocarbon resources and pursue new opportunities in oil and gas and other energies," said BP Chief Executive Bernard Looney.
By Lucy Heming; [email protected] and Eric Cunha; [email protected]
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