BP Quarterly Profit Jumps To 14-Year High
On Tuesday it increased the quarterly dividend by 10% and the extension of the repurchase after the high oil and gas price in the second quarter produced the highest quarterly income of the supermemajor in 14 years, which easily defeated analyst expectations.
BP reports today the underlying reimbursement costs – the preferred metric for net profit – from $ 8.45 billion for the second quarter, up from $ 6.2 billion for the previous quarter and far above the analyst estimated of $ 6.8 billion. Leap in Q2 Revenue – Highest Quarterly Profit since 2008 – “was driven by a powerful refining margin that was realized, sustainably the extraordinary oil trade performance and higher fluid realization,” said Bp.
Gas marketing and trading dropped from “extraordinary results in the first quarter,” which partially compensated by the extraordinary oil trade performance in Q2. The ongoing blackout in Freeport LNG affects LNG trade and causes “significant reduction in the amount of cargo that is expected to be received,” said Bp. BP’s net debt fell for the ninth quarter successively reached $ 22.8 billion at the end of Q2, down $ 4.6 billion from the end of the first quarter.
Considering the solid results, BP announced a 10% increase in quarterly dividends to 6,006 cents per ordinary share to reflect “underlying performance and generate business cash, which has enabled strong progress in providing stock repurchases and reducing net debt,” SuperMajor said.”In the future, on average, based on the current BP estimate, BP continues to expect to have the capacity to increase annual in dividends per ordinary share of around 4% to 2025 around $ 60 per barrel brent and subject to the council policy every quarter,” said the company .
BP also announced the back purchase of $ 3.5 billion in shares further, above the $ 2.5 billion stock repurchase program announced with the results of the first 2022 quarter and was completed last month. BP ended a strong revenue season for European and US supermajor, all of which were reportedly dense – and in some cases, quarter’s records in the middle of collecting oil and gas prices and jumped refining margin.
Last week, Shell reported the quarterly profit record for the second quarter in a row, while the totalenergy was more than doubled Q2’s net profit due to oil and gas price rally, the highest purification margin, and soared LNG demand in Europe. SuperMajors a.s. ExxonMobil and Chevron both reported the highest quarterly profit on Friday when oil and gas prices gathered and purification margins jumped to the highest multi-year in the second quarter.
