BP Q2 Earnings Report 2023
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BP Q2FY23: The UK Oil Giant's Profit for the Quarter declined Steeply on the Back of Lower Oil and Gas Prices
BP for Q2FY23 reported a 69% YoY drop in profits i.e. underlying replacement cost profit, used as a proxy for net profit, of $2.6 billion as compared to the $8.5 billion it recorded in the same period last year. The drop in the net profit reflects significantly lower realized refining margins, a higher level of turnaround and maintenance activity and a weak oil trading result; lower oil and gas realizations; and an exceptional gas marketing and trading result. (Source: BP)
The UK's Oil Giant reported operating cash flow for Q2FY23 of $6.3 billion which includes $1.2 billion of Gulf of Mexico oil spill payments within a working capital release of $0.1 billion. Moreover, BP’s net cash flow for the quarter was negative at $269mn. The company had to borrow cash to meet its net obligations. The Oil Major's net debt for Q2 rose to $23.7 billion as compared with $21.2 billion in the previous quarter. (Source: BP)
For Q2FY23 BP announced boosted its dividend by 10% to $0.70 per ordinary share. The company also announced a $1.5 billion buyback as it bets on sustained strong oil prices in the coming months. (Source: BP)
BP's CFO Murray Auchincloss said that the company would continue to return 60% of 2023 surplus cash flow through share buybacks. Between April 2022 and March 2023, BP has already reduced its share count by more than 9%. Repurchases have left fewer in circulation, boosting the company's EPS. (Source: CNBC)
The Q2FY23 results came ahead of a meeting today with the UK government, in which the heads of British energy companies might be urged to reinvest profits in new North Sea oil and gas ventures. (Source: Bloomberg)
BP shares listed on the London Stock Exchange rose around 0.6% during early morning deals. (Source: CNBC).
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