Beyond the sing bp Since its “basic reset” was announced earlier this year, it has returned to profitability and beat earnings expectations since it announced its “basic reset” from renewable energy and return to fossil fuels.
This is the second quarter since BP (No. 33 in Fortune Global 500) Start its reset and The big oil giant has had encouraging results for the first time. On August 5, its net profit in the second quarter was US$1.63 billion, BP’s net income ratio was nearly 30%, and its net income ratio was higher than the year-on-year loss of US$129 million. By comparison, BP’s full-year net profit was only US$381 million.
Kathleen Brooks, research director at XTB brokerage, said the result was “an important milestone for the company to recover profits.”
“BP has a much less interest in introducing the public to the amount of coffee it sells every year, and now focuses on the oil it can extract,” Brooks said in a note on former CEO Bernard Looney.
Looney resigned in his personal relationship with employees in 2023 and he will often tout the BP service station selling 150 million cups of coffee each year. “We may be known on the high street to sell fuel, but we also sell a lot of coffee,” he said in 2020.
Current CEO Murray Auchincloss did not mention bean drinks.
“We are still relentlessly planning to improve across BP,” Auchincloss said on the earnings call. “BP can and will do better for investors.”
With new chairman Albert Smarold playing the Oct. 1 position, Auchincloss said he is “conducting a further cost review of his business portfolio” with the incoming chairman.
BP is also under pressure from activist investor Elliott Investment Management, reiterating its goal to divest $20 billion in assets by 2027 and significantly reduce overall costs and debt while actually increasing spending on oil and gas exploration and production.
Most notably, strategic review and potential sales of its $8 billion Castro lubricant business are underway and a variety of people will be able to weigh.
BP’s stock rose nearly 2.5% in early Tuesday trading. and The conversation has now dissipated of shell Potentially buy competitor BP.
The best foot forward
Biraj Borkhataria, a capital analyst at Royal Canada, said in a note that BP has re-emerged on its “front foot” but is still in the “early stages of a turnaround journey” as it focuses on improving debt reduction and free cash flow. He hopes to see more asset sales and stronger capital expenditures turn to oil and gas production.
BP said it had reached a structural reduction of $1.7 billion by the end of 2027 to reach or exceed the $4 billion to $5 billion target. BP raised its quarterly dividend by 4% to 8.32 cents and will buy back $750 million in the third quarter.
In the crude oil world, BP said that in this century, Brazil has found the biggest discovery at sea in the Bumerangue neighborhood, although the details of the message are short.
bp said the discovery was 10Th The discoveries of the year include successful oil and gas exploration in Brazil, Trinidad, Egypt, Libya, Namibia, Angola and the U.S. Gulf of Mexico.
In the past, BP has embraced an energy transition, promising to invest in more renewable energy while narrowing the oil and gas combination and ultimately getting a “net zero”. But these goals were to pre-pandemic, and then Russia invaded Ukraine, making oil and gas prices higher and increasing emphasis on global energy security. BP continues to lag behind her peers and is now catching up.
For example, BP is now selling its onshore wind portfolio and divested a 50% stake from its global solar and offshore wind businesses.
