BP reports stronger-than-expected profit, warns of weaker refining margins, raises dividend by 10%

From CNBC: 2024-07-30 02:14:04

BP, a British oil giant, reported a stronger-than-expected net profit of $2.8 billion for the second quarter and raised its dividend by 10%. Despite warning of lower refining margins, the firm also extended its share repurchasing program and predicted a writedown of $1-2 billion due to scaling back refinery operations.

The company’s shares are down 2.8% year-to-date, while competitors like Shell and Exxon Mobil have seen their shares increase by 8% and 16%, respectively. BP’s second-quarter results are part of its strategy to rebuild investor confidence amid pressure from activist investors to increase oil and gas investments over green pledges.

In late June, BP CEO Murray Auchincloss imposed a hiring freeze and paused renewables projects to boost returns as part of a cost-cutting plan. The firm stated that Auchincloss introduced six priorities for BP to become a simpler, more focused, and higher value company.

This is a developing story, stay tuned for more updates on BP’s financial performance and strategic changes.



Read more at CNBC:: BP beats profit expectations after warning of weaker oil refining