BP reported an 18 per cent rise in quarterly profits thanks to strong returns from its trading division, after resurgent global demand pushed commodity prices higher.
Underlying profit on a replacement cost basis, the measure most closely tracked by analysts, rose to $3.3bn in the past three months, up from $2.8bn in the second quarter. That was driven by higher oil and gas prices and “a stronger gas marketing and trading result”, the energy company said on Tuesday. Analysts had forecast underlying profit of about $3.1bn.
BP left its dividend unchanged but announced a further $1.25bn share buyback programme as it continued efforts to tempt back investors. Chief executive Bernard Looney has committed to buying back at least $1bn of shares per quarter as long as oil prices are above $60 a barrel.
“This has been another good quarter for BP,” Looney said in a statement. “Rising commodity prices certainly helped, but I am most pleased that quarter by quarter, we’re doing what we said we would — delivering significant cash to strengthen our finances, grow distributions to shareholders and invest in our strategic transformation.”
BP, like its peers, has benefited from a global economic recovery that has pushed oil prices above $80 for the first time in more than three years and sent gas to record highs.
Net debt declined to $32bn in the quarter, down from about $32.7bn three months earlier, after falling from $38.9bn at the end of 2020.
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source https://d0llars.com/bp-profits-climb-on-rising-oil-prices/
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