Panoramic view of the BP signal and petrol station forecourt sign up Southend, UK, January 22, 2024.
John Keble | Getty Photos Information | Getty Photos
British oil main BP reported stronger-than-expected second-quarter internet revenue on Tuesday and raised its dividend regardless of earlier warnings of a pointy decline in refining margins.
The oil and fuel large reported second-quarter underlying substitute price earnings, used as a proxy for internet revenue, of $2.8 billion. That beat analysts’ expectations of $2.6 billion, in response to consensus compiled by LSEG.
BP reported a internet revenue of US$2.7 billion within the first three months of this yr and a internet revenue of US$2.6 billion within the second quarter of 2023.
The power firm introduced a ten% dividend improve and prolonged its inventory buyback program into the fourth quarter.
BP mentioned earlier this month that weak refining earnings and decrease oil buying and selling efficiency may price the corporate as a lot as $700 million in second-quarter outcomes. The corporate additionally expects writedowns of between $1 billion and $2 billion on account of plans to cut back refining operations at its Gelsenkirchen plant in Germany.
Shares within the London-listed firm fell about 2.8%% yr thus far.
By comparability, UK rivals’ share costs shell The corporate’s shares are up almost 8% to this point this yr, whereas these of U.S. oil large ExxonMobil are up greater than 16%.
BP’s second-quarter outcomes come as the corporate seeks to rebuild investor confidence in its technique. The corporate is underneath stress from activist investor Bluebell Capital Companions to extend oil and fuel investments and cut back inexperienced commitments.
Reuters reported in late June that BP Chief Govt Murray Auchincloss had frozen hiring and suspended renewable power tasks as a part of a cost-cutting plan to spice up returns. BP mentioned on the time that Auchincloss set out six priorities “to change into a less complicated, extra targeted and higher-value firm.”
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