BP PLC (LSE:BP.) reported second-quarter earnings that comfortably exceeded market expectations, with higher oil and gas prices driving a sharp increase in profitability. The energy group also confirmed it has begun exploring the potential sale of its Archaea Energy biogas business as it continues to streamline its portfolio and reduce its exposure to renewable energy assets.
Higher Commodity Prices Lift Earnings
Adjusted net profit for the three months ended 30 June rose to $5.73 billion, more than doubling from the same period a year earlier and exceeding Bloomberg’s consensus forecast of $5.01 billion.
The improvement was largely driven by stronger realised prices for oil and natural gas, as supply disruptions in the Middle East supported global energy markets during the quarter.
BP also reported stronger contributions from its gas and low-carbon businesses, although the company continues to scale back parts of its renewable energy portfolio as it focuses on higher-return operations.
Shareholder Profit and Dividend Increase
Profit attributable to shareholders increased to $3.91 billion in the second quarter, compared with $1.63 billion a year earlier.
The Board declared a second-quarter dividend of 8.66 cents per share, representing a 4% increase from the corresponding period last year.
Portfolio Simplification Continues
Chief Executive Meg O’Neill said BP has initiated a process to explore the sale of its U.S.-based Archaea Energy biogas business as part of the company’s ongoing portfolio optimisation strategy.
The potential disposal follows a series of recent asset sales, including the divestment of the Gelsenkirchen refinery in Germany and BP’s retail business in Austria. The company has also launched a sale process for its North Sea operations as it continues to reshape its portfolio around its core businesses.
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