BP PLC (LSE:BP.) has revealed that its cash flows doubled in the second quarter amidst peak oil and gas prices following the Russian invasion of Ukraine.
Operating cash flow amounted to US$10.9bn in the three months, up from US$5.4bn in the same period last year, whilst ‘surplus’ cashflow ballooned year-on-year to US$6.6bn compared to US$695mln.
For the first half, BP reported replacement cost (RC) profit of US$14.7bn versus US$5.4bn a year ago, whilst half-year cashflow amounted to US$19.07bn, versus US$11.52bn, and surplus cash flow totalled US$10.67bn versus US$2.3bn.
Exiting its Russian business (a major stake in Rosneft (LSE:ROSN)) resulted in a net pre-tax US$24bn charge in the first half of 2022.
Meanwhile, year-over-year net debt was reduced to US$22.8bn from US$32.7bn, whilst shareholder dividends are up 10% to 11.46 US cents per share and the company is to launch a new US$3.5bn programme of share buy-backs.
Bernard Looney, BP chief executive, told the oil firm’s investors that the soaring financial performance shows that the company “continues to perform while transforming”.
“Our people have continued to work hard throughout the quarter helping to solve the energy trilemma - secure, affordable and lower carbon energy. We do this by providing the oil and gas the world needs today - while at the same time, investing to accelerate the energy transition,” he said in a statement.
Joshua Warner, analyst at CFD trading firm City Index, published a quick comment, highlighting: “BP investors have plenty to cheer about today as the company reaped the rewards from significantly higher oil and gas prices, a spike in refining margins and an ‘exceptional’ performance from its trading division.”