BP boosts dividend despite profit fall as CEO Dudley bows out

LONDON: BP on Tuesday raised its dividend and announced the completion of a $1.5 billion share buyback programme in a sign of confidence in its growing oil and gas business on the last day in office for Chief Executive Bob Dudley.

The shareholder boosts came as the London-based company reported a 26% drop in fourth-quarter profit which beat forecasts and $2.7 billion (Dh9.91 billion) in charges.

“BP is performing well, with safe and reliable operations, continued strategic progress and strong cash delivery. This all supports our commitment to growing distributions to shareholders over the long term,” Dudley said in a statement, a day before his successor Bernard Looney takes over.

Cash flow rose by more than 10 per cent in 2019 to $25.8 billion despite lower commodity prices as a result of higher production, particularly in US shale following the acquisition of BHP.

BP increased its dividend by 2.4 per cent to 10.5 cents per share.

It reported $2.57 billion in fourth-quarter underlying replacement cost profit, its definition of net income, exceeding forecasts of $2.1 billion in a company-provided survey of analysts.

That was down from $3.5 billion a year earlier but up from $2.3 billion in the third quarter.