British Petroleum (LON: BP) introduced a $1.40 billion share repurchase for the third quarter on Tuesday and raised its dividend to five.46 cents per share as earnings exceeded expectations in Q2. BP now expects a 4% improve in annual dividend by way of 2025 and roughly $1 billion of inventory buyback per quarter, estimating oil value to common at $60 per barrel.
Bernard Looney’s feedback on CNBC’s “Squawk Field”
In accordance with CEO Bernard Looney, it was the upper commodity costs, an enhancing stability sheet, and powerful underlying efficiency that drove the arrogance to extend the return to shareholders. On CNBC’s “Squawk Box”, he stated:
“We’re seeing a slight muting of oil demand due to the delta variant, however I wouldn’t say it’s materials but. As we glance ahead, we see oil demand returning to pre-pandemic ranges in 2022. There are uncertainties that stay, however the OPEC+ self-discipline, their want and their capability to maintain costs within the vary the place we see them in the present day is sort of robust. All of that bodes properly for an affordable outlook for oil costs over the approaching years.”
Second-quarter monetary efficiency
British Petroleum reported $2.8 billion of underlying substitute value revenue versus the year-ago determine of $6.7 billion in loss. In accordance with Refinitiv, analysts had known as for $2.06 billion of web revenue within the second quarter after $2.6 billion in Q1.
The oil large valued its working money circulate on the finish of the second quarter at $5.4 billion as web debt shrunk to $32.7 billion. With eight new initiatives and price financial savings from a significant restructure that slashed over 6,000 jobs, BP now expects manufacturing to see a rise in Q3.
Earlier this yr in Could, Barclays selected British Petroleum as a prime decide. Shares of the London-based multinational that has a market cap of $86 billion closed greater than 5% up on Tuesday.
The put up BP CEO on Q2 outcomes: “oil demand will return to pre-pandemic ranges in 2022” appeared first on Invezz.
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