BP Returns to Profit in First Quarter 2017

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BP Returns to Profit in First Quarter 2017
British energy firm, BP has returned to profit for the first quarter of 2017, after posting losses for 2016.

Citing higher oil prices, BP posted a £1.1bn ($1.4bn) profit for the period ending March, a considerable turn around from the $485m loss posted for 2016.

In announcing the news to the London Stock Exchange on Tuesday, BP said in its results document;

"BP’s profit for the first quarter was $1,449 million, compared with a loss of $583 million for the same period in 2016. The first-quarter replacement cost (RC) profit was $1,412 million, compared with a loss of $485 million for the same period in 2016. After adjusting for a net charge for non-operating items of $305 million and net favourable fair value accounting effects of $207 million (both on a post-tax basis), underlying RC profit for the first quarter was $1,510 million, compared with $532 million for the same period in 2016."

Other key points highlighted by the firm include;

  • Underlying replacement cost profit* for the first quarter was $1.5 billion.
  • First quarter operating cash flow, excluding payments related to the Gulf of Mexico oil spill, of $4.4 billion. Including these payments, operating cash flow* was $2.1 billion.
  • Dividend unchanged at 10 cents per share.
  • Reported oil and gas production was 3.5mmboe/d in the first quarter, 5% higher than same period in 2016.
  • New Upstream major projects* on track: Trinidad onshore compression project started up, another in ramp-up, and two more in commissioning.
  • Downstream marketing growth and strong operational performance.
  • $1.7 billion divestment of BP’s interest in SECCO petrochemical joint venture, subject to regulatory approvals.

BP cheif, Bob Dudley said; "Our year has started well. BP is focused on the disciplined delivery of our plans. First quarter earnings and cash flow were robust.

"We have shown continued operational momentum - it was another strong quarter for the Downstream and the first of our seven new Upstream major projects has started up, with a further three near completion.

"We expect these to drive a material improvement in operating cash flow from the second half."