Aker BP will raise dividends as long as oil remains above $40 per barrel

Aker BP will increase its dividend annually by 5% if North Sea oil prices remain above $40 per barrel. The company announced this on Wednesday, while also reporting first-quarter earnings that were in line with expectations.

Brent crude fell to a four year low of $60 per barrel from over $80 per barrel in January, as OPEC+ decided to accelerate output increases. This decision stoked concerns about an increasing global supply during a period when demand is uncertain.

Aker BP announced a dividend of $0.63 per quarter on Wednesday. The company also maintained its plan to pay $2.52 per share in this year. This is a 5% rise from the $2.40 paid per share by 2024.

"We have a very robust balance sheet...Our ambition is clear. We will continue to grow and pay our dividends by 5% each year, as long as oil prices are above $40 per barrel," CEO Karl Johnny Hersvik said.

Brent oil rose slightly to $63 per barrel on Wednesday as investors focused their attention on the U.S. China trade talks and signs that U.S. output is decreasing.

Aker BP has reported a profit before interest, tax, depreciation, and amortization (EBITDA), of $2.80billion for the period January-March. This is up from $2.79billion a year ago, and in line with $2.78billion expected by 18 analysts in a survey.

The Oslo-listed company's shares were up 0.2% by 0838 GMT. (Reporting and editing by Terje Solsvik, Jan Harvey, and Nerijus Adomiaitis)

(source: Reuters)