BP has announced a 10% increase in its dividend and an extension of its share repurchasing program after reporting a better-than-expected second-quarter profit of $2.76 billion.
This positive result, driven by stronger oil and gas prices despite weak refining margins, helps alleviate some of the pressure on CEO Murray Auchincloss, who has faced scrutiny after the company missed profit expectations in the previous two quarters.
Auchincloss, who took office in January, has been steering BP towards focusing on its most profitable operations, mainly in oil and gas.
In a notable shift from former CEO Bernard Looney’s strategy to expand renewables and reduce fossil fuel output, BP has approved the development of the Kaskida oilfield in the U.S. Gulf of Mexico.
This complex deepwater project is expected to begin production in 2029, with a capacity of 80,000 barrels of oil per day.
“We are driving focus across the business and reducing costs, all while building momentum in our drive to 2025,” Auchincloss stated, emphasizing the company’s renewed focus.
BP raised its quarterly dividend to 8 cents per share, up from 7.27 cents, meeting analysts’ expectations.
The company will continue its share buyback program at a rate of $1.75 billion over the next three months and aims to repurchase a total of $14 billion in shares this year and next.
The company’s underlying replacement cost profit, BP’s measure of net income, reached $2.76 billion for the quarter, surpassing the forecast of $2.54 billion.
This figure is slightly higher than the $2.7 billion profit reported in the previous quarter and $2.6 billion from a year earlier.
BP plans to maintain its capital expenditure at $16 billion annually for 2024 and 2025, aligning with its strategic focus on profitability and cost management.
