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The Markets
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Oil & Gas

BP's back-to-basics approach delivers as oil major outperforms

BP PLC (LSE:BP.) has reported a second-quarter profit of $2.76 billion, surpassing market expectations. The energy giant also announced an increase in its dividend to 8 cents, up from 7.27 cents, aligning with City predictions.

The primary driver behind this outperformance appears to be the scaling back of green initiatives introduced under former boss Bernard Looney.

Current chief executive Murray Auchincloss's back-to-basics approach has refocused the business on its core oil and gas operations.

In Tuesday's update, BP said it will continue its share buyback programme at a rate of $1.75 billion over the next three months, aiming to repurchase a total of $7 billion in shares this year.

BP's underlying replacement cost profit, a key measure of net income, reached $2.76 billion for the three months ending in June, exceeding the $2.54 billion forecast by analysts.

This quarter's profit compares to $2.7 billion in the previous quarter and $2.6 billion a year ago.

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