BP Hikes Dividend on Strong Oil Prices and Improved Profit

BP has increased its quarterly dividend by four percent to 8.66 cents per share, as higher oil prices offset lower production volumes. This is BP's first full quarter under new CEO Meg O'Neill.

The company reported underlying replacement cost (RC) profit of $5.73 billion or $36.92 per share for the second quarter, up from $3.2 billion in the prior three-month period. RC profit soared to $4.63 billion from $662 million.

BP's production under its 'oil production and operations' segment fell to 1.44 million barrels of oil equivalent a day (MMboed) in Q2, but average realized prices increased to $84.1 per barrel for liquids.

The company also reported a decline in gas output from the 'gas and low-carbon energy' segment, with realized prices increasing to $94.09 per barrel for liquids and $8.04 per thousand cubic feet for gas.