BP raises dividend despite drop in profits

Oil giant BP has reported second-quarter earnings down from the previous quarter's record level but unexpectedly raised its quarterly…

Oil giant BP has reported second-quarter earnings down from the previous quarter's record level but unexpectedly raised its quarterly dividend to 5.5 cents from 5.25.

The world's third-largest oil company, as with others in the industry, is pulling in more cash than it can spend on viable projects and acquisitions. The dividend hike comes on top of an ongoing share buyback programme.

Replacement-cost net profits adjusted to exclude goodwill amortisation from acquisitions was $3.799 billion, up from $3.61 billion a year ago and in line with forecasts.

But lower oil and gas prices meant the result was down from $4.13 billion in the first quarter. It was also the first quarterly result not to show a record for two years.

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The company also confirmed a quarterly trading statement last month that put oil and gas output growth in the quarter up 4 per cent from a year ago but down 3 per cent on the first quarter.