Oil firm Aker BP to raise dividend in H2 after upbeat quarterly results (updated)

Orron Energy AB

20/07/2022 06:38

(Adds context)
    By Gwladys Fouche
    OSLO, July 20 (Reuters) - Norwegian oil company Aker BP
 AKRBP.OL  posted upbeat second-quarter results on Wednesday and
said it will raise its dividend payments in the second half of
the year, as it continued to benefit from high oil and gas
prices due to the war in Ukraine.
    Earnings before interest, taxes, depreciation and
amortisation (EBITDA) for April-June rose to $1.75 billion from
$855 million a year ago, it said, just short of record $1.78
billion earnings it posted in the first quarter.
    Last month, Aker BP closed its deal to acquire Norwegian
assets of Sweden's Lundin Energy  LUNE.ST  in a cash-and-stock
deal, making it the second-largest listed oil firm in Norway
after state-controlled Equinor  EQNR.OL .  urn:newsml:reuters.com:*:nL8N2T63VQ
    "High oil and gas prices have contributed to strong cash
flow, allowing us to complete the Lundin transaction without
adding new debt while our credit ratings have been upgraded," 
Chief Executive Officer Karl Johnny Hersvik said in a statement.
    "Consequently, we are now able to further increase the
dividend level."
    In the second half of 2022, Aker BP will offer quarterly
dividends of $0.525 per share, equivalent to an annualised level
of $2.1 per share, up from earlier plans to pay $1.9 apiece for
the full year in four quarterly instalments.  
    Energy companies worldwide have benefited from surging oil
and gas prices following Russia's invasion of Ukraine. 
    With Europe covering about 40% of its gas needs with Russian
supplies before the Feb. 24 invasion, importing nations have
been scrambling to cut their dependence on Moscow and secure
alternative supplies.
    Norway, Europe's second-largest energy supplier after
Russia, has benefited as it is seen as a reliable supplier. 
    

 (Reporting by Gwladys Fouche; Editing by Muralikumar
Anantharaman and Sherry Jacob-Phillips)
 ((gwladys.fouche@tr.com; +47 21 04 05 53; Reuters Messaging:
Twitter handle: @gfouche))