BP Reports Q2 Results Below Expectation, Raises Dividend

BP plc BP reported second-quarter FY23 sales and other operating revenues decline of 28.5% year-over-year to $48.54 billion, missing the consensus of $54.48 billion.

Production was 903 mboe/d (-2.2% Y/Y), with underlying production down 2.9% due to lower base performance.

The Renewables pipeline stood at 39.6GW (bp net), including 16.6GW bp net share of Lightsource BP's pipeline. 

Underlying RC profit per American Depositary Share (ADS) came in at $0.89, missing the consensus of $1.21. 

Operating cash flow was $6.29 billion, compared to $10.86 billion in the prior-year quarter. Capital expenditure increased to $4.31 billion from $2.84 billion a year ago.

Net debt stood at $23.66 billion versus $22.82 billion a year ago.

"We're delivering our strategy at pace - we've started up two major oil and gas projects to help keep energy flowing today and we're accelerating our transformation through our five transition growth engines. And we're delivering for shareholders growing our dividend and announcing a further share buyback. This reflects confidence in our performance and the outlook for cash flow, as well as continued progress reducing our share count," commented Bernard Looney, Chief executive officer.

Dividend: BP announced a dividend per ordinary share of 7.270 cents, an increase of 10%. Payable to common shareholders and ADS holders on September 22, 2023, with the record date on August 11, 2023.

During the quarter, the company completed $2.1 billion of share buybacks. BP will execute a further $1.5 billion share buyback before reporting third-quarter results.

3Q23 Outlook: BP expects reported upstream production to be broadly flat compared to 2Q23. 

In its customers' business, bp expects seasonally higher volumes. BP expects a lower turnaround and maintenance activity in refining than in the second quarter.

FY23 Outlook: BP expects both reported and underlying upstream production to be higher compared with 2022.

Price Action: BP shares are trading higher by 0.74% at $37.56 on the last check Tuesday.