BP profit triples to $8.45 billion in Q2 amid steep energy prices

BP has reported its best quarterly financial performance in 14 years and increased its dividend by 10%, as the oil major reaps the benefits of strong prices for oil and gas in the three months ending June 30.

The company made US$8.45 million in net earnings in the period, which was more than three times the $2.8 billion BP reported in the same quarter in 2021. The figure beat analyst expectations of $6.8 billion and was up from $6.25 billion in the first quarter of the year.

This performance was driven by strong refining margins, an ‘exceptional’ oil trading performance and higher fuel prices, BP said. The figures were however offset by weaker gas trading in the period.

As a result, BP increased its dividend by 10% to 6.006 cents per share and also increased its share repurchases plan for the current quarter to $3.5 billion, after buying $4.1 billion in the first half of the year.

BP said it expected crude oil and gas prices and refining margins to remain ‘elevated’ in the third quarter and said it would stick to its target of using 60% of its surplus cash on share buybacks.

“BP continues to build a track record of delivery against its disciplined financial frame,” CFO Murray Auchincloss said in a statement.

Following earnings calls from fellow Big Oil firms Exxon Mobil and Royal Dutch Shell last week, the total Q2 profit tally for the three companies is $59 billion. The strong performance of these companies has drawn criticism from consumers, particularly in the UK, who are facing ballooning energy bills as part of a broader cost of living crisis.