BP delivers higher-than-expected profits and raises dividend

Oil giant BP has posted a higher-than-expected profit of more than £4.2 billion for the first half of 2024 and hiked its dividend for shareholders.

The FTSE 100 company nevertheless reported that profits were down on the same period a year earlier amid lower profitability in its refining business.

BP posted underlying replacement cost profit of 5.48 billion US dollars (£4.26 billion) for the six months to the end of June, down from 7.55 billion dollars (£5.88 billion) a year earlier.

Nevertheless, it came after a profit of 2.76 billion dollars (£2.15 billion) in the second quarter, which surpassed analyst predictions.

It came after the London-listed firm had revealed earlier this month that it had taken a hit of between one and two billion dollars (£781 million to £1.6 billion) from onerous contracts.

On Tuesday, BP told shareholders that its gas and low carbon energy business delivered a replacement cost loss, after it witnessed weaker gas marketing and trading.

Meanwhile, oil production and operations saw a rise in profits.

Murray Auchincloss, chief executive of BP, said: “Our businesses continue to operate safely and efficiently.

“We are driving focus across the business and reducing costs, all while building momentum in our drive to 2025.

“Our recent go-ahead of the Kaskida development in the Gulf of Mexico business, and decision to take full ownership of BP Bunge Bioenergia while scaling back plans for new biofuels projects, demonstrate our commitment to delivering as a simpler, more focused and higher-value company.

“This all supports growing returns for shareholders, as we have announced today.”

The group also announced it increased its dividend by 10% and extended its share repurchasing programme to the fourth quarter.

Alice Harrison, head of fossil fuel campaigns at Global Witness, said: “As the world faces record-breaking heat, most of us are desperate to see urgent action on the climate crisis.

“Unfortunately, it’s clear that BP couldn’t care less.

“While millions of us struggle with high temperatures and high bills, BP are raking in billions of profits, paying out massive dividends, and doubling down on dirty new oil and gas projects.”