Key events
BP lifts dividend
BP is also planning to pump more cash to its shareholders.
The company is raising its quarterly dividend by 4 per cent to 8.32 cents a share, subject to board approval.
It has also announced a new $750m share buyback programme.
BP launches new cost review despite profit beat
Oil giant BP is launching a new cost-cutting scheme, despite reporting better than expected profits, as its incoming chairman gets to grips with the company in the face of pressure from activist investors.
BP has beaten City expectations this morning by reporting a smaller drop in underlying profits than expected in the last quarter.
On an underlying replacement cost basis, profits rose to $2.35bn in April-June. That’s 15% lower than the same quarter a year ago when the company benefitted from higher oil and gas prices, but also a jump on the $1.38bn profits posted in January-March.
Analysts had forecast a smaller rise in underlying profits, to $1.8bn.
But despite this beat, CEO Murray Auchincloss says “there’s much more to do”.
Auchincloss tells shareholders this morning:
In advance of chair elect, Albert Manifold joining the board on 1 September, he and I have been in discussions and have agreed that we will conduct a thorough review of our portfolio of businesses to ensure we are maximizing shareholder value moving forward – allocating capital effectively.
We are also initiating a further cost review and, whilst we will not compromise on safety, we are doing this with a view to being best in class in our industry.
Earlier this year, BP announced plans to cut more than $5bn from its previous green investment plan.
But activist investor Elliott Management has been pushing BP to cut its operating expenses more aggressively and demanding more cost reductions.
Manifold is due to become chairman on 1 October, a month after joining the board as a non-executive director.
Introduction: UK car sales fall in July
Good morning, and welcome to our rolling coverage of business, the financial markets, and the world economy.
UK car sales dipped last month, after a bumper June.
British new car registrations fell about 5% year-on-year in July, according to preliminary data released this morning by the Society of Motor Manufacturers and Traders (SMMT).
Battery electric vehicles are now projected to account for 23.8% of new registrations in 2025, slightly up from SMMT’s previous forecast of 23.5%.
The SMMT should release its final figures for July at 9am.
The data comes as the UK government announces that France’s Citroën will be the first company to benefit from its new discount scheme, which cuts the cost of a new EV car for consumers.
Transport Secretary Heidi Alexander has confirmed buyers will get discounts of £1,500 off 4 Citroën models – the Citroën ë-C3, ë–C4, ë-C5 and the ë-Berlingo – from today.
The scheme aims to bring down the price of electric cars to more closely match their petrol and diesel counterparts.
The agenda
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9am BST: UK new car sales for July
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9am BST: eurozone service sector PMI for July
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9.30am BST: UK service sector PMI for July
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1.30pm BST: US trade data for June
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2.45pm BST: US service sector PMI for July