BP has raised its quarterly dividend by 4% to $0.0832/share or $0.4992/ADS. The new dividend will be payable on September 19 to shareholders of record on August 14. The company also announced a $750 million share buyback.
BP plc (BP) has announced a significant increase in its quarterly dividend and a substantial share buyback program. The company's quarterly dividend has been raised by 4% to $0.0832 per share, payable on September 19 to shareholders of record on August 14. Additionally, BP has initiated a share buyback program with a maximum allocation of $750 million, which will be executed on the London Stock Exchange and/or Cboe (UK) [3].
The dividend increase comes amidst strong financial performance. BP's underlying replacement cost (RC) profit for the second quarter of 2025 was $2.4 billion, a significant improvement over the previous quarter's $1.4 billion. This quarter's result reflects an average gas marketing and trading result, stronger realized refining margins, and a strong oil trading result, partially offset by lower liquid and gas realizations and a higher level of refinery turnaround activity [1].
BP's operating cash flow for the second quarter was $6.3 billion, up $3.4 billion from the previous quarter, reflecting higher earnings and lower working capital build. The company's net debt has been reduced to $26.0 billion, as cash inflows from higher operating cash flow and divestment and other proceeds exceeded cash outflows during the period [1].
The share buyback program is part of BP's strategy to return excess cash to shareholders. The company expects total shareholder distributions of 30-40% of operating cash flow over time. BP's commitment to maintaining a strong balance sheet and maintaining 'A' grade credit range through the cycle is evident in its target of $14-18 billion of net debt by the end of 2027 [1].
References:
[1] https://www.bp.com/en/global/corporate/investors/results-reporting-and-presentations/quarterly-results-and-webcast.html
[2] https://www.marketscreener.com/news/loews-corporation-declares-quarterly-dividend-payable-on-september-2-2025-ce7c5ed8dc89f520
[3] https://www.tradingview.com/news/reuters.com,2025-08-05:newsml_RSE0159Ua:0-reg-bp-plc-share-repurchases/
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