BP CEO hails exploration discovery boon after shock revenue beat

BP CEO Murray Auchincloss on Tuesday leaned into the expansion potential of the corporate’s current oil and fuel discoveries, because the struggling vitality main battles takeover questions amid a significant turnaround.

“Contained in the upstream, we have had great efficiency, together with document working effectivity [and] together with beginning up 5 new main initiatives,” BP’s Auchincloss advised CNBC’s “Squawk Field Europe” on Tuesday, simply after the discharge of the corporate’s second-quarter outcomes.

“We have had great exploration success, 10 business exploration discoveries this 12 months and yesterday we introduced our most enjoyable, the Bumerangue discovery in Brazil,” Auchincloss stated.

The London-listed firm on Monday introduced its largest oil and fuel discovery in 25 years off the coast of Brazil, reflecting a doubtlessly important enhance because it continues to double down on hydrocarbons.

BP’s CEO stated he was “very optimistic” in regards to the Bumerangue oil and fuel discovery.

Earlier, the vitality main reported underlying alternative price revenue, used as a proxy for web revenue, of $2.35 billion for the three months by means of June. That comfortably beat analyst expectations of $1.81 billion, based on an LSEG-compiled consensus.

BP’s web revenue got here in at $2.76 billion over the second quarter of final 12 months and $1.38 billion within the first three months of 2025.

BP stated its quarterly dividend will enhance to eight.32 cents from 8 cents and that it’s going to preserve the tempo of its share buyback program at $750 million for the second quarter.

The outcomes come as BP continues to attempt to rebuild investor confidence following a protracted interval of underperformance relative to its trade friends.

Shares of the corporate are up round 3.3% year-to-date.

BP’s web debt got here in at $26.04 billion on the finish of the second quarter, down from almost $27 billion in comparison with the primary three months of the 12 months.

BP, which is below intense stress to enhance profitability from the likes of activist investor Elliott, additionally stated it will provoke an additional price evaluation of its belongings.

The transfer comes shortly earlier than Albert Manifold joins BP’s board from Sept. 1 and as chair from Oct. 1.

Requested for additional particulars of this strategic evaluation, Auchincloss advised CNBC: “In case you suppose again to 2020, we lowered our prices by 25%, and in 2024 we introduced one other program to cut back our prices by one other 20%. That is the $4-5 billion that I referenced earlier.”

“If we are able to obtain that, that may take us to round prime quartile within the sector, however I do not suppose that’s sufficient,” Auchincloss stated.

“We have to hold driving safely to be the easiest within the sector we may be. And that is why we’re centered on one other evaluation to attempt to drive us towards finest in school contained in the sector,” he added.

BP has lately been the topic of intense takeover hypothesis, prompting home rival Shell to say in late June that it had “no intention” of constructing a proposal. UAE oil large ADNOC, in addition to U.S. oil giants Exxon Mobil and Chevron, are amongst among the names which were touted as potential suitors.

Requested whether or not the corporate had been approached by any potential suitors amid ongoing takeover hypothesis, Auchincloss stated BP is targeted on progress.

“That is what’s going to drive the share worth up for shareholders,” he added.