BP has announced a robust financial performance for the second quarter of 2024, highlighting an underlying replacement cost (RC) profit of $2.8 billion. This marks a slight increase from $2.7 billion in the previous quarter and underscores BP’s strong operational cash flow of $8.1 billion and reduced net debt, now at $22.6 billion.
Key Highlights:
- Financial Performance: BP’s underlying RC profit for 2Q24 stands at $2.8 billion, reflecting resilient operational performance despite lower refining margins. The company’s reported loss for the quarter was $0.1 billion, impacted by inventory holding losses and adjusting items.
- Capital Management: BP has announced a dividend of 8 cents per ordinary share and a $1.75 billion share buyback for the second quarter, reaffirming its commitment to returning surplus cash to shareholders. The company plans an additional $3.5 billion share buyback for the second half of 2024.
- Operational Efficiency: BP achieved a 96.1% reliability rate in its upstream operations and 96.4% refining availability for the quarter.
- Growth and Investments: The company has taken a final investment decision on the Kaskida project in the US Gulf of Mexico, expected to start production in 2029. BP is also focusing on advancing bioenergy with the full acquisition of bp Bunge Bioenergia.
CEO Statement: Murray Auchincloss, BP’s Chief Executive Officer, stated, “Our businesses continue to operate safely and efficiently. The approval of the Kaskida development and the strategic shift in our bioenergy business illustrate our commitment to delivering as a simpler, more focused, and higher-value company. This approach supports our goal of increasing returns for our shareholders.”
