Enlarge image
BP logo: New investments in fossil fuels and hydrocarbons
Photo: HENRY NICHOLLS / REUTERS
British oil multinational BP posted its best second-quarter results in 14 years.
Like its competitors Shell, ExxonMobil and TotalEnergies, the company is benefiting from the rise in oil prices and high refinery margins.
BP tripled its profit in the second quarter from a year earlier to $8.5 billion, beating analyst estimates of $6.8 billion.
"The company is doing well and is getting stronger," BP CEO Bernard Looney told Reuters on Tuesday.
When he took office in 2020, he promised to quickly switch BP from fossil fuels to renewable energy, but now wants to increase spending on new oil and gas by $500 million.
The group is reacting to the global supply crisis.
Looney also announced plans to invest more in hydrocarbons in the near term to help ensure energy security.
"We're probably going to spend about half a billion dollars on hydrocarbons," the manager said.
Higher dividend for shareholders
The shareholders should benefit from the bubbling profits and receive a dividend increased by ten percent to 6.006 cents per share - the previous forecast was plus four percent.
In addition, the group is sticking to its goal of using 60 percent of its excess cash for share buybacks.
The board increased its repurchase plan to $3.5 billion for the current quarter after purchasing $4.1 billion of shares in the first half.
The news was well received on the stock exchange: BP shares rose by almost four percent.
The leading Western oil and gas companies are benefiting from skyrocketing energy prices in the wake of the Ukraine war and combined profits of $59 billion in the second quarter.
BP's competitors ExxonMobil and Shell recently reported record profits, while TotalEnergies was able to triple its profits.
mgo/dpa/Reuters
