BP boosts dividend despite profit fall as CEO Dudley bows out

BP boosts dividend despite profit fall as CEO Dudley bows out

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

FILE PHOTO: The logo of BP is seen at a petrol station in Kloten, Switzerland October 3, 2017. REUTERS/Arnd Wiegmann/File Photo

The shareholder boosts came as the London-based company reported a 26% drop in fourth-quarter profit which beat forecasts and $2.7 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% in 2019 to $25.8 billion despite lower commodity prices as a result of higher production, particularly in U.S. shale following the acquisition of BHP.

BP increased its dividend by 2.4% 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.

(GRAPHIC: BP Q4 19 profits – here)

(GRAPHIC: BP 2019 profit – here)

Reporting by Ron Bousso; editing by Jason Neely