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BP reported adjusted earnings of $8.5 billion for the second quarter as it benefited from rising energy prices.
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BP
is the latest oil supermajor to record its most profitable quarter in years and joins
Exxon Mobil
and
Chevron
take advantage of rising energy prices.
BP
(ticker: BP) wrote that “exceptional” oil trading and strong refining margins rose to $8.5 billion for its adjusted earnings, up $2.8 billion from the same period last year and well above analyst forecasts. It posted a profit of $6.2 billion in the first quarter.
Shares of BP rose 4.1% in London. BP’s US certificates were up 2.7%.
BP was one of Barron’s top picks for 2022.
Major oil has benefited from rising energy prices as economies recovered and demand boomed after Covid, and a supply constraint due to sanctions against Russia after the invasion of Ukraine.
It is in stark contrast to the fate of the oil industry during the pandemic which suffered as lockdowns slumped demand, slowed production and plummeted energy prices.
BP also increased its dividend by 10% and announced a further $3.5 billion share repurchase. It has also allowed $800 million to cover a new tax on UK oil and gas profits proposed by the UK government last month.
BP said in a statement it expects “oil prices to remain high in the third quarter due to continued disruption to Russian supply, reduced spare capacity and inventory levels significantly below the five-year average.”
Last week, rival
Shell
(SHEL) also saw strong performance in its refining and gas trading divisions, leading to a doubling of adjusted earnings for the second quarter to $11.5 billion.
Exxon
Mobil (XOM) said on Friday that rising energy prices and increased manufacturing have helped it break a previous record for quarterly earnings, while
Chevron
(CVX) raised its share buyback forecast and also posted solid gains.
Write to Rupert Steiner at [email protected]
