On Tuesday, BP reported its second-highest quarterly profit in its history. The UK-based oil and gas company said it would increase its dividend by over 10 per cent. The company also added another USD 2.5 billion to its ongoing buyback program.

Underlying replacement cost profit, BP’s most preferred measure of profitability, doubled from a year ago to USD 8.15 billion. Strong cash flow can be attributed to sustained high oil prices.

The company said that it was able to shave another USD 800 million from its net debt, which remained at USD 22 billion at the end of the quarter.

BP said that its financial strength, accompanied by the current outlook for oil prices, implies that it would be able to deliver share buybacks of around USD 4 billion per annum. It further stated that it also has the capacity for an annual increase of around 4 per cent in the ordinary dividend through 2025.

Originally founded in 1909, BP Plc (formerly British Petroleum Company) is one of the world’s largest companies measured by revenue and profits. It is one of the oil and gas ‘supermajors’, headquartered in London.