BP PLC (LSE:BP.) announced a 4% rise in its second-quarter dividend and launched a share buyback programme as it confirmed a further strong quarterly performance.
The transitioning oil major reported a US$3.1bn profit for the three months ended June 30, compared to US$4.7bn in the prior quarter.
Underlying replacement costs profit (a preferred metric for BP) was marked at US$2.8bn, up slightly from the US$2.6bn achieved in the first three months of the year. Operating cashflow (including US$1.2bn of Gulf of Mexico oil spill payments) amounted to US$5.4bn.
The dividend increased to 5.46 US cents per share and the company plans an annual 4% increase in the shareholder pay-out each year until 2025. BP added that US$1.4bn of surplus cash generated in the first half will be used for share buybacks and going forward, it expects US$1bn of buybacks per quarter.
It comes as the oiler aims to reward and incentivise shareholders whilst the company seeks to reposition strategically.
“We are a year into executing BP's strategy to become an integrated energy company and are making good progress - delivering another quarter of strong performance while investing for the future in a disciplined way,” said chief executive Bernard Looney.
Looney added: “We continue to perform while transforming BP, generating value for our shareholders today while we transition the company for the future.”
BP said it has in the past year delivered 8 major projects in its transition efforts, adding a 21 gigawatt renewable energy pipeline.
It opened the UK's first fleet-dedicated EV rapid charging hub in London, which is planned as the first of a several across Europe. In the United States, it is soon set to complete a deal to take full control of convenience outlet operator Thorntons. (LSE:THT)
Divestments tallied some US$10bn in the year.