Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
BP increased its dividend and extended its share repurchasing programme on Tuesday as it reported a forecast-beating second-quarter profit of US$2.76 billion (RM12.75 billion). This profit was bolstered by stronger oil prices and retail performance, despite weak refining.
The results are expected to ease pressure on CEO Murray Auchincloss, who has been focusing on the most profitable operations, primarily in oil and gas, since taking office in January. This marks a shift from former CEO Bernard Looney’s strategy of expanding renewables and reducing fossil fuel output. BP has greenlit the development of the Kaskida oilfield in the US Gulf of Mexico and a low-carbon hydrogen project at its Castellon refinery in Spain.
Key Takeaways:
- Dividend Increase: BP raised its dividend by 10% to eight cents per share, in line with analysts' expectations.
- Share Buyback: The company maintained its share buyback programme at US$1.75 billion for the next three months and committed to buying a total of US$14 billion of shares this year and next.
- Profit Details: BP reported a second-quarter profit of US$2.76 billion, surpassing the forecast of US$2.54 billion. This compares to a US$2.7 billion profit in the previous quarter and US$2.6 billion a year earlier.
- Weak Refining: Weaker refining margins due to lower diesel demand and higher refinery maintenance were offset by higher oil and gas prices and a lower than expected tax rate.
- Stock Performance: BP shares rose 1.85%, outperforming the broader European energy index.
- Cost Reduction: BP is working to exceed its target of reducing annual costs by US$2 billion by the end of 2026.
CEO Auchincloss emphasized the company's focus on reducing costs and building momentum towards its 2025 targets. Despite weak refining margins, global demand for gasoline and diesel is expected to support refining margins during the summer driving season.
BP will maintain capital expenditure at US$16 billion per year in 2024 and 2025.
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