BP's Q2 Earnings Triple On Rising Energy Prices, Boosts Quarterly Dividend

• BP Plc 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