BP lifts payout as profits slip

12 April 2012

ENERGY group BP sought to cheer its investors after revealing its profits had nearly halved thanks to lower oil and gas prices.

The group said the market was showing some signs of improvement, and raised its second-quarter dividend.

'The world economy continued to recover during the second quarter and further growth is expected in the third quarter, though recent financial market weakness poses a downside risk,' said chief executive Lord Browne. 'Our continued performance delivery has underpinned our capacity to increase the dividend.'

BP said it would also restart its share buyback programme - offering shareholders an extra bonanza in the shape of improved earnings per share.

Interim profits fell 47% to $3.76bn (£2.41bn), in line with City forecasts. Second-quarter profits fell 36% to $2.18bn, mainly because of lower natural gas prices in the US and Britain and a tougher refining and marketing environment. But the figure was still more than 30% higher than the first-quarter showing. 'The market has shown some signs of underlying strength as inventories stabilised rather than built seasonally,' Browne added.

The second-quarter dividend rises to 6 cents a share from 5.75 cents, leading to a 9% first-half hike. The dollar's slide, however, clips the sterling payout to 3.875p a share from 3.911p last time.

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