British oil giant BP PLC announced plans to reward its shareholders with a $7 billion payout this year through stock repurchases, despite a 30% drop in profits during the first half of 2024. The company reported a decline in underlying replacement cost profit to $5.5 billion, down from $7.6 billion the previous year, primarily due to lower earnings from its refining business.
However, BP's second-quarter profit of $2.8 billion exceeded expectations, leading to a 1.3% increase in its stock price during morning trading in London. The company's decision to continue its share buyback program in the second half of the year and a 10% dividend increase further bolstered investor confidence.
BP's CEO emphasized the company's commitment to streamlining operations and enhancing overall value. Despite these efforts, critics have raised concerns about BP's environmental impact, accusing the company of prioritizing high-carbon activities over green investments.
Notably, BP's recent approval of the Kaskida project in the Gulf of Mexico and reduced commitments to biofuels and offshore wind projects have drawn criticism from environmental advocates. Global Witness, a non-profit organization, highlighted the urgency of addressing climate change and criticized BP's perceived lack of action in combating the crisis.
As the global community grapples with rising temperatures and environmental challenges, stakeholders are calling for greater accountability and sustainability measures from corporations like BP. The company's strategic decisions moving forward will likely be scrutinized in the context of its environmental responsibilities and long-term sustainability goals.
