BP (BP.L), increased its dividend and extended its share repurchasing program on Tuesday as it reported a forecast beating second-quarter profit of nearly $2.8 billion, with weak refining offset by stronger oil prices and retail earnings.
The result, which topped analysts' estimates by 9%, is likely to ease pressure on CEO Murray Auchincloss after BP fell short of profit expectations in the previous two quarters.
The 53-year-old Canadian, who took office in January, has vowed to revamp BP's operations and focus on the most profitable ones, mostly in oil and gas, Reuters reported.
In a sign of change from his predecessor Bernard Looney's strategy to grow renewables and reduce fossil fuel output, BP said it had given a green light to the development of the Kaskida oilfield in the US Gulf of Mexico, a highly complex project in deep geological formations.
The field is expected to start production in 2029 and have a capacity of 80,000 barrels of oil per day (bpd).
The company also announced it would go ahead with the development of a low-carbon hydrogen project at its Castellon refinery in Spain.
BP shares closed 0.3% down, after being up most of the day, compared with a flat performance for the broader European energy index (.SXEP).
The stock has underperformed rivals this year amid investor concern over the British company's energy transition strategy and doubts that it will meet its 2025 earnings targets.
BP is working to exceed its target to reduce annual costs by $2 billion by the end of 2026, Auchincloss said in an analyst presentation posted online. Reuters reported in June that the company had imposed a hiring freeze and suspended investments in new offshore wind projects.
"We are driving focus across the business and reducing costs, all while building momentum in our drive to 2025," Auchincloss said in a statement.
