LONDON – BP said Tuesday that it would be returning around a half-billion dollars to shareholders after “significantly” higher oil prices contributed to a big rise in profits and a reduction in debt levels.
The energy company said its underlying replacement cost profit — the industry standard that strips out one-off items — spiked to $2.6 billion in the first three months of 2021 from $791 million a year earlier.
That was markedly ahead of the rise to $1.6 billion that had been the consensus in financial markets. BP, which is seeking to transform its business to a lower-carbon future, said it will launch a $500 million share buyback program in the second quarter as it confirmed it had reached its target of reducing net debt to below $35