BP profits gush to $2.8bn as oil energizes sector
LONDON: Britain’s BP yesterday became the latest global energy major to win an earnings boost from runaway oil prices, rounding off an impressive earnings season for the industry’s big hitters.
BP said net profit rocketed to $2.8 billion in the three months to the end of June-and hiked its dividend for the first time in four years. The company’s performance compared with slender profit of $144 million in the same part of 2017 when it was hit by asset writedowns and large tax payments. Revenues meanwhile spiked by more than a third to $75.4 billion.
The news came just days after BPflush with cash from the soaring oil market-purchased US shale oil and gas operations from the world’s biggest miner BHP Billiton for $10.5 billion in what it has called a transformational deal.
Strategic investment
“There is no doubt that higher oil prices have not only contributed to BP’s profit-but they have enabled the company to look for strategic investment (with) BHP Billiton,” ThinkMarkets analyst Naeem Aslam said.
“There was no chance for BP to produce this kind of revenue and profit numbers or even to look for acquisitions if oil prices were still around $30 per barrel.” At the same time, BP snapped up Britain’s largest electric vehicle charging firm Chargemaster in June for an undisclosed amount, as it bets on booming green demand in the coming decades.
“We continue to make steady progress against our strategy and plans, delivering another quarter of strong operational and financial performance,” said chief executive Bob Dudley in the statement.
“We brought two more major projects online, high-graded our portfolio through acquisitions such as BHP’s US onshore assets and invested in a lowcarbon future with the creation of BP Chargemaster.
“Given this momentum and the strength of our financial frame, we are increasing our dividend for the first time in almost four years. “This reflects not just our commitment to growing distributions to shareholders but our confidence in the future.”
BP follows in the footsteps of broadly upbeat Q2 earnings from Anglo-Dutch rival Royal Dutch Shell, Repsol of Spain, Total of France, and US titans Chevron and ExxonMobil. — AFP