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BP PLC on Tuesday announced a $1.5 billion share buyback programme and raised its dividend as it posted an interim swing to a profit. Second quarter attributable profit came in at $1.79 billion, down considerably from $9.26 billion a year earlier and from $8.22 billion in the first quarter of 2023. However, in the first half of 2023, it swung to a profit of $10.01 billion from a loss of $11.13 billion a year prior. Underlying replacement cost profit in the quarter fell to $2.59 billion, down from $8.45 billion year-on-year and $4.96 billion in quarter one. The average realised price for oil was $70.40 per barrel of oil in the first half of 2023, down 23% from $92.00 a year ago and 12% lower than what BP said was the average oil market price of $79.66 per barrel. The oil major declared a second quarter dividend of 7.27 US cents, up 10% from 6.61 cents a year ago. This brings the half-year dividend to 13.88 US cents, up 21% from 11.466 cents a year ago. BP said the second quarter was resilient with good cash delivery amid turnaround activity and weak refining margins. It also announced that a new share buyback programme will be completed before reporting third quarter results. The buyback will be for a further $1.5 billion shares, down slightly from the $1.75 billion share buyback just completed. Looking ahead, BP said it expected reported and underlying upstream production in 2023 to be higher than in 2022, amid $4.0 billion per year in buybacks. The company was optimistic to be supported by seasonal demand and output restrictions by OPEC+ countries in the third quarter. Further, in the third quarter the company anticipates industry refining margins to stay above historical average levels, boosted by seasonal demand in the US and due to low product inventories. BP shares were 2.1% higher at 493.20 pence each in London on Tuesday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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