BP to Hand Shareholders $7 Billion on Stock Buybacks
[Stay on top of transportation news: Get TTNews in your inbox.]
LONDON — U.K.-based oil giant BP PLC said July 30 it will reward shareholders to the tune of $7 billion this year through the purchase of its own stock, even as it reported a near 30% decline in profits in the first half of 2024.
BP said in a statement its underlying replacement cost profit — the industry standard that strips out one-off items — fell to $5.5 billion against last year’s $7.6 billion, largely on the back of lower earnings from its refining business.
Despite the first-half decline, BP’s second-quarter profit of $2.8 billion was modestly higher than expectations, which helped the stock rally 1.3% in morning trading in London to 4.60 pounds.
Also boosting the share price was the news that BP was planning to continue with its share buyback program during the second half of the year and a 10% increase in its dividend.
Today we share our 2Q results, showing good strategic momentum and progress on our six priorities.
See how we’re delivering growth projects and driving focus into the business: https://t.co/4bmDuY9Gfs pic.twitter.com/ue0A1nOXQv — bp (@bp_plc) July 30, 2024
Murray Auchincloss, chief executive of BP, said the company remains committed to creating a “simpler, more focused and higher value company.”
Critics say BP is not doing enough in the battle against climate change, prioritizing high-carbon activities, while relegating its green investments, noting the company’s recent decision to go ahead with the development of the Kaskida project in the Gulf of Mexico and scaling back its commitments in biofuels and offshore wind.
“As the world faces record-breaking heat, most of us are desperate to see urgent action on the climate crisis,” said Alice Harrison, head of fossil fuel campaigns at Global Witness. “Unfortunately, it’s clear that BP couldn’t care less.”
Want more news? Listen to today's daily briefing below or go here for more info:
