BP has reported a robust second quarter profit as the energy major continues to advance its 12-quarter plan to drive performance and long-term shareholder value.
Fresh from announcing BP's biggest oil discovery this century, Chief Executive Murray Auchincloss said the company had made early progress and confirmed that a thorough review of its portfolio is now underway to ensure capital is being allocated effectively.
The firm announces an underlying replacement cost profit of $2.4billion (£1.8billion) this morning – up from $1.4billion (£1billion) in the previous quarter, albeit down on the previous year due to lower energy prices.
So far this year, BP has brought five new major oil and gas projects online, sanctioned four more, and made ten exploration discoveries, including a significant find in Brazil’s Bumerangue block.
It said yesterday that the latter discovery was the company's biggest since the Shah Deniz gas field in the Caspian Sea in 1999.
These developments came as the company pressed ahead with structural cost reductions, which now total $1.7billion (£1.2billion) against a 2023 baseline.
Divestment activity has also accelerated, with around $3billion (£2.2billion) in proceeds announced year-to-date. These include agreements to sell BP’s integrated mobility business in the Netherlands and its onshore wind business in the US.
Mr Auchinloss said: "We are two quarters into a twelve-quarter plan and are laser-focused on delivery of our four key targets – and while we should be encouraged by our early progress, we know there’s much more to do.
"In advance of chair elect, Albert Manifold joining the board on 1 September, he and I have been in discussions and have agreed that we will conduct a thorough review of our portfolio of businesses to ensure we are maximising shareholder value moving forward – allocating capital effectively."
He added: "This is all in service of accelerating the delivery of our strategy. BP can and will do better for its investors."
In a further boost to those investors which Mr Auchinloss mentions, the firm announced a quarterly dividend to 8.32 cents per share and launched a $750million (£564million) share buyback programme.