BP PLC (LSE:BP.) reported a sharp drop in profitability hit by falling refining margins but still rewarded shareholders with a 10% boost to the dividend.
“Another quarter of performing while transforming. Our underlying performance was resilient with good cash delivery - during a period of significant turnaround activity and weaker margins in our refining business,” chief executive Bernard Looney said.
In the three months to 30 June 2023, replacement cost profit reached US$2.59bn, down from US$8.45bn a year ago and US$4.96bn in the previous quarter.
Operating cash flow totalled US$6.29bn from US$10.86 the year prior while the dividend was boosted by 10% 7.27 cents from 6.006 cents before.
The oil major said compared to the first quarter of 2023, the results reflect significantly lower realized refining margins, a significantly higher level of turnaround and maintenance activity and a weak oil trading result; lower oil and gas realizations; and an exceptional gas marketing and trading result.
BP said it plans a further US$1.5bn share buyback before reporting third-quarter results as part of its commitment to using 60% of 2023 surplus cash flow for this purpose.
Capital expenditure in the second quarter was US$4.3bn, including US$1.1bn for the acquisition of TravelCenters of America, and BP continues to expect capex of US$16-18bn in 2023.