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Stronger-than-forecasted quarterly figures for British Petroleum

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Miguel A. Rodriguez
Miguel A. Rodriguez
03 August 2021
Oil and gas giant topped Q2 earnings estimates while expanding its dividend and share buyback program

British Petroleum revealed a full-year underlying replacement cost profit of $2.8 billion, topping the $2.6 billion net profit reported for the first quarter of 2021. Analysts were looking for a Q2 net profit of $2.06 billion. Additionally, British Petroleum also increased its dividend by 4% to 5.46 cents per share.

Moreover, BP’s net debt fell to $32.7 billion from $33.3 billion, marking the fifth consecutive quarter of decreased debt from the $51 billion reported in Q1 2020.

British Petroleum results were driven by the strong commodity prices, with Brent oil reaching an average of $69 per barrel in Q2. Overall, oil prices rebounded in the past months, reaching multi-year highs.

In Q3, the UK-based company announced it would buy back $1.4 billion shares using a $2.4 billion cash surplus accrued in the first half of 2021. BP anticipates an annual dividend increase of 4% through 2025 based on an estimated average oil price of $60/ barrel.

At the moment of writing, BP stock price is up more than 4.50%. Year-to-date, the company’s stock price gained almost 15%.

Source: cnbc.com, finance.yahoo.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.