BP Plc (NYSE: BP) posted a Q2 underlying profit of $8.5 billion, its highest in 14 years, from $2.8 billion a year ago, driven by strong realized refining margins, continuing exceptional oil trading performance, and higher liquids realizations.
Total revenues increased 85% to $69.5 billion.
BP increased its dividend by 10% to 6.006 cents per share, more than its previous guidance of a 4% annual increase through 2025. It halved the dividend to 5.25 cents in July 2020 for the first time in a decade in the wake of the pandemic.
The company expects crude oil and gas prices and refining margins to remain "elevated" in the third quarter and said it would stick to its target of using 60% of its surplus cash on share buybacks.
BP expects Q3 2022 upstream production on a reported basis to be broadly flat compared with Q2 2022.
The company plans to maintain its overall capital expenditure of $14 billion - $15 billion this year.
CEO Bernard Looney told Reuters that BP is increasing its spending on oil & gas by $500 million in response to increasing prices and supply challenges.
"We will direct more investment towards hydrocarbons to help with energy security in the near term," he told Reuters.
Price Action: BP shares are up 2.17% at $29.68 during the premarket session on the last check Tuesday.
Photo: Courtesy of Thomas Hawk on flickr
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