Aug 3, 2021
BP raises dividend and announces share buyback to win back investors
BP raised its dividend and announced a $1.4bn share buyback programme after the energy company reported stronger than expected results for the second quarter. The energy major on Tuesday said underlying profit on a replacement cost basis, the measure most closely tracked by analysts, rose to $2.8bn in the second quarter, surpassing expectations for about $2.2bn. Chief executive Bernard Looney, who has started to pivot the business over the long-term towards renewable energy since taking the helm last year, said the company was raising its dividend 4 per cent and would have the "Capacity" to increase it by a similar amount each year to 2025. Royal Dutch Shell and Italy's Eni last week increased their dividend and joined other companies including France's Total in launching share buyback programmes. The company raised its dividend from 5.25 cents a share to 5.46 cents, the first increase since slashing it last August when oil prices were depressed. The share buyback of $1.4bn was expected to be executed before the third-quarter results, compared with $500m in the second quarter.
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