BP Increases Dividend and Launches $750m Share Buyback
BP has announced plans to return more cash to shareholders, including a 4% increase in its quarterly dividend to 8.32 cents per share, subject to board approval.
In addition, the company has unveiled a new $750 million share buyback programme, reinforcing its commitment to shareholder returns.
BP Launches New Cost Review Despite Beating Profit Expectations
BP is initiating a fresh cost-cutting drive, even after delivering better-than-expected second-quarter profits — a move reflecting growing pressure from activist investors and the incoming leadership of its new chairman.
The oil major reported underlying replacement cost profits of $2.35 billion for the April–June period, comfortably ahead of analysts’ forecasts of $1.8 billion. While profits were 15% lower year-on-year — due to softer oil and gas prices — they marked a strong rebound from the $1.38 billion posted in the previous quarter.
Despite the earnings beat, CEO Murray Auchincloss signalled further changes are on the horizon. He told shareholders this morning:
“In advance of chair-elect Albert Manifold joining the board on 1 September, he and I have been in discussions and have agreed that we will conduct a thorough review of our portfolio of businesses to ensure we are maximizing shareholder value moving forward — allocating capital effectively.
We are also initiating a further cost review and, whilst we will not compromise on safety, we are doing this with a view to being best in class in our industry.”
The move comes amid mounting pressure from activist investor Elliott Management, which has been urging BP to implement deeper cuts to operating expenses and to accelerate cost reductions.
Earlier this year, BP announced it would scale back more than $5 billion in planned green investments, shifting its strategic focus more squarely onto shareholder returns.
Albert Manifold, currently CEO of CRH, is set to join the board as a non-executive director on 1 September, and formally assume the role of chairman on 1 October.
