British multinational oil firm BP plc announced a $1.4-billion buyback program after turning a profit in the second quarter versus the loss incurred in 2020.
- Chief Executive Officer Bernard Looney said the company will finance the buyback program from its first-half surplus cash flow, with plans to increase dividends by 4% per ordinary share.
- BP estimates buybacks of $1.0 billion per quarter, based on an average of $60 per barrel. This would increase the dividend per ordinary share to around 4% through 2025.
- BP reported $3.116 billion in profit attributable to shareholders in the second quarter, up from the $16.848-billion loss in 2020. Underlying profit per ordinary share was at $13.80 versus the $33.05 loss per share in the same quarter in 2020.
- BP expects the market to continue its rebalancing process, with demand seen to recover this year. Third-quarter upstream production is projected to be higher than the second quarter.
BP continues to expect divestment to reach $5 to $6 billion in late 2021, with capital expenditure for the year set at $13 billion. BP is up 5.38%.