Sparks - bp

BP reported underlying replacement cost profit of $2.4bn in Q2, up from $1.4bn in Q1. Operational performance was strong, with refining availability at 96.4% (up from 96.2% in Q1) and upstream plant reliability at 96.8% (up from 95.4%).  Operating cash flow was $6.3bn, $3.4bn higher than the previous quarter, reflecting higher earnings and lower working capital build.  BP delivered cost reductions of $0.9bn in H125, taking cumulative reductions to $1.7bn against the 2023 baseline (with the target remaining $4-5bn by the end of 2027).  BP announced a 4% dividend increase to 8.32c and a further $750m buyback for the coming quarter.  Ahead of Albert Manifold joining the board as chair on 1 September, management has agreed to initiate a portfolio review focused on capital allocation and maximising shareholder value.

BP has started five major projects year to date and announced 10 exploration discoveries, including the significant Bumerangue find in Brazil announced yesterday, its most significant deepwater find in 25 years, intersecting a 500m gross hydrocarbon column in high-quality pre-salt carbonate reservoir.