BP recorded a strong profit in the second quarter of 2021, after a billion-dollar loss a year earlier, and increased the dividend. This turned out to be a show on Tuesday.
A profit of $ 3.1 billion was recorded in the second quarter. A year earlier, the oil group had to incur a loss of no less than 16.8 billion dollars due to write-offs. In the first quarter of 2021, BP earned $ 4.7 billion.
Underlying earnings were 2.4 billion dollars compared to 3.3 billion dollars a quarter earlier and a loss of 17.7 billion dollars a year earlier.
BP’s operating cash flow was $ 5.4 billion last quarter, a significant improvement from $ 3.7 billion last year. In the first three months of 2021, this was as much as 6.1 billion dollars. Net debt fell to $ 32.7 billion at the end of the quarter. This was 33.3 billion dollars a quarter earlier. BP wants to pay a 4 percent higher dividend over the second quarter of 5.46 cents per share.
The oil giant also wants to start a stock buying program worth 1.4 billion dollars. In any case, BP thinks that with an oil price of about 60 dollars per barrel, there is room to buy in 1 billion dollars of its own shares per quarter and to further increase the dividend by 4 percent.
BP reiterated the plan to distribute at least 60 percent of the surplus cash flow to the shareholder in the form of a purchase of its own shares, provided that the creditworthiness is not compromised. The remaining 40% will then be used, among other things, to strengthen the balance sheet.