BP Earnings: Better-Than-Expected Results Accompanied by 10% Dividend Increase

BP's second-quarter earnings slightly exceeded market expectations as underlying replacement cost profit increased to $2.8 billion from $2.6 billion a year ago, with operating cash flow growing to $8.1 billion from $6.3 billion the year before, aided by a large working capital release. Stronger oil production and product results offset weakness in gas and low-carbon energy. Trading was a drag during the quarter with an average gas trading result compared with an exceptional result in the same period last year. Oil trading remained weak during the quarter. Production increased 4.8% to 2,380 barrels of oil equivalent per day from the year before thanks to continued strong bpx energy performance and contributions from major projects. Management still expects slightly higher volumes in 2024 compared with 2023. Our fair value estimate and moat rating are unchanged.