Energy giant BP is a cash machine, fuelled by surging oil and gas prices that have been spurred even higher by the war in Ukraine. The question for investors is how long the generous returns will last.
Over the second quarter of last year the oil major generated $10.9 billion in operating cashflow, taking the total for the first six months of the year alone to $19.1 billion, easily outpacing the $13.8 billion across the whole of 2019.
It’s not hard to see how BP’s production and trading businesses made hay. The price of Brent crude averaged $114 a barrel over the three months to the end of June, touching record highs. In the US, Henry Hub natural gas prices rose 60 per cent in
