BP (LSE:BP.) posted second-quarter earnings that exceeded analyst expectations on Tuesday, rebounding despite recent turbulence in the global oil and gas landscape.
The company’s underlying replacement cost (RC) profit for Q2 rose to $2.4 billion, up from $1.4 billion in the first quarter, driven by stronger results across its business units.
Although this represented a decrease from the $2.76 billion recorded in the same quarter last year, it outperformed the consensus estimate of $1.81 billion compiled by LSEG.
Operating cash flow reached $6.3 billion, a significant increase from $2.8 billion in Q1, despite factoring in a $1.1 billion payment related to a Gulf of Mexico settlement.
The oil production segment delivered an underlying RC profit of $2.3 billion, falling short of last year’s figures due to weaker prices realized and higher depreciation charges.
Production grew 2.5% year-over-year, reaching 1.52 million barrels of oil equivalent per day, while realized liquids prices declined to $59.74 per barrel from $73.05 a year earlier.
Gas and low carbon energy generated $1.5 billion in underlying RC profit, remaining largely flat year-on-year as reduced production was balanced by improved margins. Production in this segment dropped 13% following divestments in Egypt and Trinidad.
The customers and products division saw underlying RC profit climb to $1.5 billion from $1.1 billion a year ago, supported by stronger trading and midstream activities that offset softer refining margins. BP’s refining availability remained robust at 96.4%.
“We are delivering our plan with operational reliability above 96%,” said CEO Murray Auchincloss. “We remain fully focused on delivering safely and reliably, maintaining capital discipline and driving performance improvement.”
He added that BP is undertaking a strategic review of its portfolio to “ensure we are maximizing shareholder value.”
Capital expenditure for the quarter totaled $3.4 billion. Net debt decreased to $26.0 billion from $27.0 billion in Q1, aided by $1.4 billion in divestment proceeds.
BP also increased its dividend by 4% to 8.32 cents per share and announced a new $750 million share repurchase program.
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