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Wednesday, May 18, 2022

BP boosts dividend as it swings back into profit on oil recovery

BP has unveiled a dividend hike and more share buybacks, with plans for further hefty payouts for investors after swinging to a half-year profit.

The oil giant posted replacement cost profits of $5.7bn (£4.1bn) for the first six months against eye-watering losses of $18.3bn a year ago, thanks to a sharp recovery in the cost of crude.

Net profit for the April-June quarter hit $3.1bn, compared with a loss after tax of $16.8bn in the second quarter of 2020.

The energy behemoth announced a 4pc rise in the shareholder dividend for the second quarter to take it to 5.46 cents per share, and said it would undertake a $1.4bn share buyback before its third-quarter results.

It added that with oil prices expected at $60 a barrel, it is set to deliver share buybacks of around $1bn each quarter and hike its dividend by about 4pc a year through to 2025.

Boss Bernard Looney said: “We are a year into executing BP’s strategy to become an integrated energy company and are making good progress – delivering another quarter of strong performance while investing for the future in a disciplined way. This shows we continue to perform while transforming BP – generating value for our shareholders today while we transition the company for the future.”

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