BP’s (LON:BP) share price has surged in London this morning as the blue-chip group’s quarterly profit came ahead of expectations. The energy major further noted that it remained on target to deliver its five-year plan.
As of 09:10 BST, BP’s share price had added 3.55 percent to 545.70p. The shares are outperforming the benchmark FTSE 100 index which is currently standing 0.20 percent higher at 7,701.95 points, partially held back by a hefty slump in Centrica (LON:CNA), whose shares have been sold off following its interim update.
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BP posts Q2 results
BP announced in a statement this morning that its underlying replacement cost profit for the second quarter of the year was $2.8 billion, similar to a year earlier, with good operating performance partially offset by lower crude prices. Reuters noted in its coverage of the news that the number exceeded a company-provided forecast of $2.46 billion. The energy major further reported operating cash flow, excluding Gulf of Mexico oil spill payments, of $8.2 billion for the second quarter, and declared a dividend of 10.25 cents per share for the quarter.
“At the midpoint of our five-year plan, BP is right on target. Reliable performance and disciplined growth across our businesses are delivering strong earnings, cash flow and returns to shareholders,” BP’s chief executive Bob Dudley commented in the statement.
Dudley further told CNBC’s ‘Squawk Box Europe’ that this was about the 10th quarter in a row now that the numbers had been above the company’s expectations.
“It is a good quarter — a strong quarter,” he added.
Analysts on group
Royal Bank of Canada, which is bullish on the energy major with a ‘buy’ rating, set a target of 615p on the BP share price. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average valuation of 650p.