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
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