BP delivered a sharp rebound in second-quarter earnings as stronger oil and refining margins boosted profits, while new chief executive Meg O'Neill said the company would accelerate plans to simplify the business following the launch of the sale process for its UK North Sea operations.
The energy giant reported underlying replacement cost profit – its preferred measure of performance – of $5.7billion for the second quarter, up from $3.2billion in the previous quarter and more than double the $2.4 billion recorded a year earlier. Operating cash flow also jumped to $10.9 billion, while net debt fell to $22.3 billion from $25.3 billion at the end of the first quarter.
BP said the stronger performance reflected higher oil and gas prices, significantly stronger refining margins and the strength of its integrated business model.
The results come days after BP confirmed it was marketing its North Sea business for sale as part of a broader strategic review. The company this morning also announced plans to sell Archaea Energy, its US biogas business, as it reshapes its portfolio.
Chief executive Meg O'Neill said: "This is my first full quarter at bp, and it has been marked by one of the most disrupted periods in the global energy market. Through that, bp's team has stepped up, working tirelessly to keep energy flowing for our customers."
She added: "Financially, we delivered a strong quarter, with an underlying replacement cost profit of $5.7 billion ($2.5 billion higher than last quarter) and an operating cash flow of $10.9 billion, after a working capital build of $1.0 billion."
On the company's strategic direction, she said: "We made good progress strengthening bp's balance sheet. We also took steps to simplify and strengthen bp. In recent weeks, we sold our Gelsenkirchen refinery, agreed to sell our retail business in Austria and announced our intention to sell our North Sea business in the UK. Today, we are announcing our intention to sell Archaea, our biogas business in the US."
FSTE100
The UK's flagship share index, the FTSE 100, was xx at xx shortly after opening this morning.
Brent crude oil futures were up 1.06%, sitting at $84.661 a barrel this morning.
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