BP shares rose by 4.5% to 409.8 pence on Tuesday as the London-based company boosted returns to shareholders following an increase in revenue for the second quarter. The oil giant’s net income of $8.45 billion is its highest since 2008. In addition to the increase in crude and natural gas prices, the company claims that this revenue hike stems from strong performances by both its refineries and oil traders.
According to analysts at Redburn, BP is delivering strong results across earnings/cash, capital discipline, and shareholder distributions. The company’s dividend was increased to 6 cents a share during the second quarter, while its debt fell to $22.82 billion, compared to $32.7 billion a year earlier.
Chief Executive Officer Bernard Looney showered BP with praise on Tuesday, stating: “Today’s results show that BP continues to perform while transforming; providing the oil and gas the world needs today — while at the same time investing to accelerate the energy transition.”
As fears of recession take hold, analysts widely believe that the second quarter may prove to be the high point for oil companies such as BP this year. BP still expects, however, that oil and gas prices will remain high going into the third quarter due to the disruptions caused by the Russia-Ukraine conflict and low inventories.