(Boursier.com) — BP will spoil its shareholders. After years of lean cows, the British giant, which unveiled its highest annual profit in eight years, will buy back $ 1.5 billion in additional shares by the publication of its first quarter 2022 results after having already returned $4.15 billion to its shareholders last year. In 2021, the oil major posted adjusted net profit of $12.8 billion, compared to a loss of $5.7 billion a year earlier. Operating cash flow amounted to $23.6 billion, compared to $12.2 billion in the previous year.
“We approach 2022 with growing confidence. The past two years have reinforced our belief in the opportunities the energy transition presents – to create value for our shareholders and to achieve net zero emissions,” said Bernard Looney, CEO of BP.
The results show how far BP has come since the start of the pandemic, with the group paying off more than $8 billion in net debt over the past year and increasing its dividend. For 2022, and subject to maintaining a strong credit rating, BP is committed to using 60% of excess cash flow to carry out share buybacks and intends to allocate the remaining 40% to strengthening the balance sheet. On average, based on the group’s current guidance, at around $60 a barrel of Brent and subject to Board approval each quarter, the firm expects to be able to buy back shares of approximately $4 billion per year and to have the ability to increase the dividend per common share by approximately 4% annually until 2025.
The company has also pledged to moderately increase its investments, but from a historically low level. Capital spending will be between $14 billion and $15 billion this year, up from $12.8 billion in 2021, and will stay within that range until 2025. By then, BP plans to spend more than 40% of its investments in activities related to the energy transition. The company also said it could hit the famous ‘net-zero emissions’ sooner than its 2050 target.
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