BP besieged beats on income while it boasts the sale of oil, no cups of coffee, to make fun of his old CEO

It is the second quarter that BP (n ° 33 in the Global 500 fortune launched its reset and the first time that the Big Oil Giant has promising results to boast. With a beat of almost 30% on its net profits in the second quarter of $ 1.63 billion announced on August 5, BP net income increased from an annual loss of $ 129 million, which is compared to the annual BP net profit for only $ 381 million.

Kathleen Brooks, research director of the XTB brokerage house, described the results of “significant milestone for the company when she returns to profits”.

“BP is much less interested in talking to the public about the number of coffees it sells each year and is now focusing on the amount of oil it can extract,” Brooks said in a note, spicy in the old CEO Bernard Looney.

Looney, who resigned in 2023 among the problems of unknown personal relations with the employees, regularly praised that the BP service stations sell more than 150 million cups of coffee per year. “We may be much better known on the main street for having sold fuel, but we also sell a lot of coffee,” he said in 2020.

The current CEO Murray Auchincloss made no reference to such drinks conducive to beans.

“We remain implacable in our goal of providing improvements through BP,” said Auchincloss in the call of winnings. “BP can and will do better for its investors.”

The new president Albert Manifold who comes into the role of October 1, Auchincloss said that he “launched another cost exam” of his commercial portfolio with the inbound president.

BP, also under pressure from the activist investor Elliott Investment Management, reiterated its objective of giving up $ 20 billion in assets by 2027 and has greatly reduced overall costs and debt, while increasing expenditure in exploration and production and production of oil and gas.

More specifically, a strategic journal and a potential sale of its activity as Castrol lubricants of 8 billion dollars are underway, and the collector will be able to weigh.

BP shares increased almost 2.5% at the start of negotiation on Tuesday. And the conversation has been dissipated for the moment of Shell potentially buying his BP rival.

Best foot forward

RBC Capital analyst Biraj Borkhataria said in a note that BP was back on his “front foot”, but is still in the “first stages of his recovery journey” as focused on improving the reduction in debt and available cash flows. He expects to see more asset sales and stronger capex changes towards the production of oil and gas.

BP said that it had reached $ 1.7 billion in structural costs discounts, online to reach or exceed the target of $ 4 billion to $ 5 billion by the end of 2027. BP increased its quarterly dividend by 4% to 8.32 cents and will buy $ 750 million in the third quarter.

In the world of crude oil, BP said that it had made its greatest discovery this century off Brazil in the Bumerangue block, although the announcement is short on details.

BP called the discovery Son 10^th Discovery of the year, including other oil and gas exploration successes in Brazil, Trinidad, Egypt, Libya, Namibia, Angola and the American Gulf.

In the past, BP has adopted the energy transition, committing to investing more in renewable energies while narrowing its oil and gas portfolio and finally reaching “net zero”. But these objectives were before the pandemic, then the invasion of Ukraine by Russia, sending higher oil and gas prices and reinforcing the emphasis on global energy security. BP continued to be lagging behind behind its peers and now plays catching up.

For example, BP now sells its American onshore wind portfolio and has deactivated 50% of its solar and offshore wind companies.