BP logs 70% dip in second-quarter net profit, raises dividend by 10%

BP’s second-quarter profit slumped 70 per cent from a year earlier to $2.6 billion, missing forecasts, as refining margins and oil trading income fell, but still allowing the energy giant to boost its dividend by 10 per cent.

Rivals Chevron, Exxon Mobil, Shell and TotalEnergies have also reported sharp drops in quarterly earnings, hurt by a drop in energy prices from highs hit following Russia’s invasion of Ukraine a year and a half ago.

“Our underlying performance was resilient with good cash delivery – during a period of significant turnaround activity and weaker margins in our refining business,” CEO Bernard Looney said.

BP’s net income, missed expectations of $3.5 billion.

It fell from $8.5 billion a year earlier and from $5 billion in the first quarter.

Riding high on rate hike, HSBC doubles income

HSBC Holdings raised its key profitability target and announced a fresh $2 billion share buyback on Tuesday, as rising central bank interest rates worldwide helped it more than double its income for the first half of the year. That helped the bank raise its near-term return on tangible equity goal to at least mid-teens for 2023 and 2024, up from a previous target of at least 12 per cent for this year and a reported level of 9.9 per centfor 2022. 

 

The London-based lender’s robust performance update came after it quashed a vote by activist shareholders including Ping An Insurance in May, who had pressured the bank to spin off its operations in Asia.  HSBC’s shares in London rose 2.7 per cent against a flat FTSE 100 benchmark index. The bank’s shares have climbed 68 per cent over two years, while rival Barclays has fallen 14 per cent amid turbulence in its investment bank over the period.