BP has reported increased second-quarter profits as it shifts focus toward oil and gas developments.
The oil giant’s underlying replacement cost profit rose to nearly $2.8 billion (£2.1 billion) for the three months ending in June, a 6% increase compared to the same period last year. This shift aligns with new CEO Murray Auchincloss’s strategy to prioritize fossil fuel projects.
BP achieved a better-than-expected half-year profit of $5.5 billion (£4.3 billion), although this was a decrease from last year’s $7.6 billion (£5.9 billion), reflecting lower profitability in its refining business.
The company faced a $1 billion loss in the second quarter due to its decision to scale back oil production operations in Germany. Despite this, BP announced a $1.75 billion share buyback for the second quarter and committed to $3.5 billion in share buybacks for the second half of the year to enhance shareholder returns.
Additionally, BP confirmed its investment in the deepwater Kaskida development in the Gulf of Mexico, 14 years after the Deepwater Horizon disaster that resulted in the spill of 4.9 million barrels of oil off the US coast. The company also announced a reduction in plans for new biofuels projects and paused all new offshore wind projects.
Mr. Auchincloss, who assumed the role of permanent CEO at the beginning of the year, stated, “We are driving focus across the business and reducing costs, all while building momentum in our drive to 2025.”
