Shares in BP (LON:BP) have climbed higher this morning as the company updated investors on its second-quarter performance, delivering a rise in profits as it continued to benefit from the ongoing recovery in the oil price. The update came after the blue-chip oil major inked a deal to buy BHP Billiton’s (LON:BLT) shale oil and gas assets in the US and signalled plans to hike its payout to shareholders.
As of 08:29 BST, BP’s share price had added 0.53 percent to 568.50p. The stock is marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.1 percent higher at 7,708.52 points.
BP posts second-quarter results
BP announced in a statement this morning that its underlying replacement cost profit had come in at $2.8 billion for the second quarter of the year, four times that reported for the same period in 2017. The oil major benefitted from ‘significantly higher’ earnings from its Upstream division, as well as its stake in Rosneft.
The company’s production rose to 3.6 million barrels of oil equivalent per day in the first half of the year, while Upstream production, excluding Rosneft’s contribution, rose 1.4 percent.
“We continue to make steady progress against our strategy and plans, delivering another quarter of strong operational and financial performance,” BP’s chief executive Bob Dudley commented in the statement.
Oil major hikes dividend
BP further announced that it was hiking its payout to shareholders by 2.5 percent to 10.25 cents per share, marking the first rise in the group’s dividend since the third quarter of 2014. The group further noted that it had continued its share buyback programme with 29 million ordinary shares bought back in the first half at a cost of $200 million.