BP Posts $5.7 Billion Quarter and Raises Dividend 4%

BP reported second-quarter underlying replacement cost profit of $5.7 billion on Tuesday, up 78% from the first quarter, driven by stronger commodity prices, improved refining margins and higher trading performance. Operating cash flow came in at $10.9 billion.

The company raised its dividend to 8.66 cents per ordinary share, a 4% increase, and said net debt fell to an expected $22 billion to $23 billion from $25.3 billion in the first quarter. Upstream production of roughly 2,170 to 2,220 thousand barrels of oil equivalent per day was lower sequentially due to seasonal maintenance and Middle East disruption.

BP also continued reshaping its portfolio, selling its Gelsenkirchen refinery, agreeing to sell its Austrian retail business, and announcing plans to divest its UK North Sea business and its US biogas unit Archaea.