Profits at BP in the first half of the year beat expectations with the oil and gas giant upping its dividend payments to shareholders for the first time in a year.
The company's investors are due to receive a total of roughly $7 billion (£5.4bn) this year through a combination of dividend payments and share buy-backs as the company has scaled back on its green investments to deliver what chief executive Murray Auchincloss describes as a "simpler, more focused and higher-value company".
“We are driving focus across the business and reducing costs, all while building momentum in our drive to 2025," said Mr Auchincloss, who took over at the beginning of this year.
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BP said it will lift its interim dividend payment by 10% while buying back stock worth $1.75bn over the next three months. This takes total buy-backs for the first six months of the year to $3.5bn, and $7bn for the year as whole.
The group posted an underlying replacement cost profit - which is used as a proxy for net profit - of $2.8bn for the second quarter. That beat analysts' consensus expectations of $2.6bn.
BP also made a better-than-expected half-year profit of $5.5bn, although it was down on last year’s $7.6bn amid lower profitability in its refining business. The company had warned earlier this year that "significantly lower" profit margins from refining could wipe out up to $700 million from its earnings for the quarter.
BP chief financial officer Kate Thomson said the company generated strong operating cash flow in the quarter, which helped reduce net debt to $22.6bn.
“Our decision to increase our dividend by 10%, and extend our buyback programme commitment to 4Q 2024, reflects the confidence we have in our performance and outlook for cash generation," she added.
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