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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Energy

BP dividend in decent shape after solid quarter says fund manager

Underlying profit was US$2.8bn, little changed from a year ago

BP PLC (LON:BP.) posted solid second-quarter numbers as higher production offset lower oil prices.

Oil and gas production averaged 3.8mln barrels a day or some 4% more than a year ago as four upstream projects were switched on.

Underlying profit was US$2.8bn, little changed from a year ago, while US$8.2bn of cash was generated in the second quarter and US$14.2bn for the half.

Gulf of Mexico oil spill payments were US$1.4bn.

Steve Clayton, manager of the HL Select UK Income Shares fund said: “With a portfolio of new field developments set to come onstream over the next few years, BP should enjoy a period of robust production and cash flow, resulting in bright prospects for the group’s dividend.

“The current quarterly dividend of 10.25 cents per share adds up to a yield of 6.2%.

"With sterling currently weak due to fears over the economic impact of Brexit, BP’s dollar earnings look ever more valuable to UK investors.”

Shares in BP rose 2.7% to 541p.

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