LONDON: British oil giant BP said Tuesday that second-quarter net profit rocketed to $2.8 billion, energized partly by high crude prices, and hiked its dividend for the first time in four years.
Earnings after taxation stood at the equivalent of €2.4 billion in the three months to June, BP said in a results statement.
That compared with a slender profit of $144 million in the same part of 2017 — when its performance was weighed down by asset write-downs and large tax payments.
“We continue to make steady progress against our strategy and plans, delivering another quarter of strong operational and financial performance,” said chief executive Bob Dudley.
“Given this momentum and the strength of our financial frame, we are increasing our dividend for the first time in almost four years.
“This reflects not just our commitment to growing distributions to shareholder but our confidence in the future.”
BP is the latest global energy major to post bumper profits, following in the footsteps of Anglo-Dutch rival Royal Dutch Shell, Repsol of Spain, Total of France, and US titans Chevron and ExxonMobil.
Rising oil prices translate into rising revenues and profits for energy majors and producer nations.
The oil market has surged on the back of a December 2016 deal between the Organization of the Petroleum Exporting Countries (OPEC) cartel and Russia to curb output.
The price of London Brent crude, the main global oil benchmark, has jumped some 50 percent over the last twelve months to the current level of $74 per barrel.
OPEC and Russia, fearing an out-of-control spike in prices, reached a new deal in June to open the taps.
The buoyant market has nevertheless fizzed higher on output disruptions in oil producers like Iran, Libya and Venezuela.
BP meanwhile took another $700 million hit for the second quarter in financial costs linked to a deadly explosion on a BP-leased drilling rig in 2010 that unleashed the worst environmental disaster in US history. That took its total bill for the catastrophe to about $65 billion.
BP quarterly profit strikes $2.8 billion on high oil prices
BP quarterly profit strikes $2.8 billion on high oil prices
- Earnings after taxation stood at the equivalent of €2.4 billion in the three months to June
- Rising oil prices translate into rising revenues and profits for energy majors and producer nations
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
