BP shares rise as second quarter profits beat expectations

BP shares rise as second quarter profits beat expectations

BP

BP said on Tuesday that underlying replacement cost profit amounted to $2.8 billion for the second quarter of 2019.

Its underlying replacement cost profit, what BP defines as net income, exceeds the $2.46 billion company forecast and is similar to last year’s figure.

Shares in BP were trading over 3% higher on Tuesday following the announcement.

The second quarter’s result largely reflects continued good operating performance, offset by oil prices lower than in the second quarter of 2018, the multinational oil and gas company added.

Excluding the Gulf of Mexico oil spill payments, operating cash flow was $8.2 billion for the second quarter.

“At the midpoint of our five-year plan, BP is right on target. Reliable performance and disciplined growth across our businesses are delivering strong earnings, cash flow and returns to shareholders,” Bob Dudley, group Chief Executive, said in a company statement.

“And this is also allowing us to grow businesses that can make a significant contribution in the energy transition, helping deliver the energy the world needs with lower carbon,” the Chief Executive continued.

“We have announced another resilient set of quarterly results, in particular delivering strong underlying cash* of over $8 billion,” Chief Financial Officer Brian Gilvary added.

“Following the final acquisition payments to BHP and the scheduled annual payments relating to the Gulf of Mexico oil spill being made in the quarter, we continue to expect gearing to trend down through 2020 in line with disposal proceeds from our $10 billion programme and ongoing operating cash flow delivery.”

Earlier this year the oil and gas company posted its first quarter results, outlining a decrease in profits.

Shares in BP plc (LON:BP) were trading at +3.36% as of 09:31 BST Tuesday.