Shares in BP (LON:BP) have jumped in London this morning, as the oil major announced plans to return cash to investors. The company further posted a rise in profits for the third quarter, having adjusted to the new crude prices environment.
As of 08:22 BST, BP’s share price had added 3.35 percent to stand at 518.40p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.22 percent higher at 7,504.02 points. The group’s shares have added more than seven percent to their value over the past year, and are up by over one percent in the year-to-date.
BP’s Q3 earnings rise
BP reported this morning that its underlying replacement cost profit for the third quarter had come in at $1.86 billion, up from $933 million in the prior-year period. CNBC reports that the result exceeded the $1.59 billion expected by a Thomson Reuters analyst consensus. The group’s underlying operating cash flow for the first nine months of the year meanwhile was above the group’s organic capital expenditure and dividend.
“We have made strong progress this year in adjusting to the lower oil price environment and have now brought our finances, including the full dividend, back into organic balance at an oil price just below $50 a barrel,” BP’s finance chief Brian Gilvary commented in the statement.
Share buyback plans
BP further announced that it will kick off a share buyback in the third quarter, intended to offset the ongoing dilutive effect of its scrip dividends over time.
The oil major also said that it expects about $4.5 billion in disposal proceeds for the full year, with $1 billion received in first nine months of the year.
FTSE 100 Peer Royal Dutch Shell (LON:RDSA) is scheduled to update investors on its third-quarter performance on Thursday.