London’s FTSE 100 was boosted this morning by investors piling into oil giant BP , which announced its highest ever full year profits of £23bn last year.
The capital’s premier index jumped 0.41 per cent to 7,868.25 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, edged 0.07 per cent higher to 20,422.79 points.
The oil megacap this morning revealed soaring energy prices globally, fuelled by economies getting back online after the Covid-19 crisis and Russia’s invasion of Ukraine, has propelled its profits to a record high.
Its shares leapt over four per cent to the top of the FTSE 100, lifting Shell, its rival, in its slipstream, up 1.02 per cent.
The pair represent an enormous share of the index, meaning movements in their shares exert a strong influence on the direction of the FTSE 100.
BP boosted its dividend by 10 per cent and announced more buybacks, firming up investor sentiment toward its shares.
Analysts said the bumper profit haul has enabled it to cushion the financial blow stemming from pulling out of Russia.
FTSE 100 opened higher today
“Such immense profits have also enabled BP to withstand the major financial cost of its Russian exit as it steps away from Rosneft, as well as deploying excess capital and at the same time actually providing an upgrade to its earnings guidance for the forthcoming year,” Richard Hunter, head of markets at interactive investor, said.
London banks also pulled the index higher, with HSBC, Lloyds and Barclays all up around one per cent ahead of UK banks earnings season kicking off next week.
The pound strengthened around 0.1 per cent against the US dollar to buy $1.2032. Yields on UK bonds, which move inversely to prices, were slightly higher today.
Oil prices climbed around two per cent after BP’s rosy results.
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