BP shares traded lower after the energy giant posted an about 70% year-over-year drop in profit for the second quarter.
For 2Q, BP’s underlying replacement cost profit was $2.59 billion, down from $8.45 billion in the year-ago quarter and $4.96 billion in the first three months of the year.
Earnings per share were $0.89, below the Street expectation of $1.21.
The company noted that the drop in profit reflected significantly lower realized refining margins, a 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.
Revenue fell from $67.87 billion in the year-ago quarter to $48.54 billion, below the $54.48 billion expected by analysts.
“Our underlying performance was resilient with good cash delivery during a period of significant turnaround activity and weaker margins in our refining business,” BP CEO Bernard Looney commented in a statement.
Unexpectedly, the company hiked its dividend by 10% to 7.270 cents per ordinary share and announced plans to execute a further $1.5 billion share buyback prior to the release of its third quarter results.
BP stock was down 0.9% at US$36.97 late morning on Tuesday.
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