BP PLC (LON: BP) more than doubled its second-quarter profit as stronger oil and gas prices, improved refining margins and a better trading performance offset lower production and increased exploration write-offs.
Underlying replacement cost profit rose to US$5.7 billion, up from US$2.4 billion a year earlier and US$3.2 billion in the first quarter. Reported profit attributable to shareholders increased to US$3.9 billion from US$1.6 billion.
Operating cash flow climbed 73% year on year to US$10.9 billion, despite a US$1 billion working-capital build. Net debt fell to US$22.3 billion from US$25.3 billion at the end of March, slightly outperforming guidance.
The improvement was driven by higher commodity prices, stronger fuel margins and a substantial recovery in refining profitability. Oil trading also performed slightly better than in the previous quarter.
However, production declined to 2.2 million barrels of oil equivalent per day from 2.3 million in the first quarter. Upstream plant reliability weakened to 92.4% from 95.7%, while refinery throughput was affected by planned maintenance and operational disruption.
BP increased its quarterly dividend by 4% to 8.66 cents per share.
The group has also started processes to sell its North Sea business and US biogas operations as part of a wider effort to simplify the portfolio, reduce debt and improve financial resilience.
BP Chief Says North Sea Is No Longer Competitive
BP chief executive Meg O’Neill has said the North Sea is no longer competitive, days after the energy major announced plans to sell its assets in the basin.
The comments reinforce BP’s decision to exit the region as part of a wider portfolio simplification strategy focused on directing capital towards higher-return opportunities.
BP has said its North Sea business retains valuable assets and an experienced workforce, but believes the operation would be better positioned under a different owner.
The planned disposal forms part of the company’s broader effort to reduce debt, improve financial resilience and strengthen shareholder returns.
