BP Raises Shareholder Payouts as 2Q Profits Beat Views -- Update
August 02 2022 - 3:24AM
Dow Jones News
By Jaime Llinares Taboada
BP PLC on Tuesday reported profits that rose further in the
second quarter of the year, beating analysts' expectations, and
raised shareholder distributions.
The multinational energy group made an underlying replacement
cost profit of $8.45 billion for the three months ended June 30, up
from $6.25 billion in the first quarter. This beat market
expectations of $6.79 billion according to the consensus compiled
by the company and averaged from 28 brokers.
On a quarterly basis, the increase in profits reflected higher
refining margins, continuing exceptional oil trading performance
and higher liquids realizations. This was partly offset by lower
gas marketing and trading earnings, reflecting the impact of the
outage at the Freeport liquefied natural gas plant in the U.S.
Net income was $9.26 billion compared with a net loss of $20.38
billion in the first quarter.
Operating cash flow rose to $10.86 billion from $8.21 billion,
while net debt was reduced to $22.82 billion from $27.46
billion.
BP raised the dividend to 6.006 cents a share from 5.460 cents
in the previous quarter, and set out a share buyback of $3.5
billion to be completed by its third-quarter results. This is up
from the latest quarterly buyback of $2.5 billion set out alongside
the first-quarter results.
For the third quarter of the year, BP forecast broadly flat
upstream production and warned of consumer demand changes driven by
inflationary pressures. Still, oil and gas prices and refining
margins are expected to remain high.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
August 02, 2022 03:09 ET (07:09 GMT)
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