Shares in oil giant BP bounced this week after it promised to “shower its shareholders with higher dividends and share buybacks”, says Jillian Ambrose in The Guardian. Thanks to unexpectedly high profits of $2.76 billion for the three months to 30 June, BP will lift its dividend payments while buying back stock worth $1.75 billion over the next quarter. This will bring its total buybacks for the first half of the year to $3.5 billion and $7 billion for 2024 as a whole. BP has paid out a total of $14.8 billion to shareholders since June 2023.
All this good news is certainly a much-needed “boost” for BP’s CEO Murray Auchincloss as he “attempts to rebuild... confidence following the abrupt resignation of Bernard Looney”, says Emma Powell in The Times. Auchincloss hopes to deliver “a simpler, more focused and higher-value company”. He has set out plans to save at least $2 billion in costs by the end of 2026 and has frozen external hiring, except for frontline roles. However, investors have yet to be convinced. The company’s shares “have lagged both domestic and international rivals”.
BP's future looks bright
BP’s future prospects also look auspicious, especially since its strong results have, in addition, enabled it to take a “further bite out of its net debt pile, which now sits at $22.6 billion”, says Hargreaves Lansdown’s Derren Nathan. In addition, the group “has its eye firmly on high-returning initiatives”, having given the go-ahead for the fully owned deepwater Kaskida hub in the Gulf of Mexico, which should add 80,000 barrels per day of production once it’s up and running.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
At the same time, the amount of energy sold through its growing EV-charging network has doubled so far this year. This “measured approach” leaves BP “well placed” to drive shareholder distributions, “while continuing to build out a strong position as an integrated energy company”.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
-
Nationwide promises to protect all its branches from closures until at least 2030The building society has extended its pledge to keep all high street Nationwide and Virgin Money branches open, now until at least 2030.
-
Could dividend tax nearly double in the Budget?Self-employed directors and investors, including pensioners, who get an income from company shares would be hit if the rumoured move to hike dividend tax goes ahead.
-
STS Global Income & Growth: Buying quality at a discountInvestors should consider STS Global Income & Growth to diversify away from mega-cap tech
-
'We still live in Alan Greenspan’s shadow'When MoneyWeek launched 25 years ago, Alan Greenspan was chairman of the Federal Reserve. We’re still living with the consequences of the whirlwind he sowed
-
Venture capital trusts that offer growth, income and tax reliefOpinion Alex Davies, founder of high-net-worth investment service Wealth Club, picks three venture capital trusts where he'd put his money
-
Go for growth: how to invest in emerging marketsDeveloping countries offer investors compelling long-term economic prospects, says David Prosser
-
Investing in AI – the ultimate bubbleIs it “different this time”, or are we in the mother of all bubbles? The economics of AI should give investors pause for thought, says Dan McEvoy
-
MoneyWeek experts pick the best investments for the next 25 yearsMoneyWeek's experts predict the best investments for the next quarter-century. Tips range from defence and agriculture to Vietnam and Jardine Matheson
-
How to navigate the ups and downs of investment marketsMax King has spent over 40 years managing a fund and investing privately. Here are the key lessons he has learnt
-
'My predictions for the next 25 years'Opinion What will the world look like when MoneyWeek celebrates its 50th birthday? Matthew Lynn shares his predictions
