1st May 2018 07:26
LONDON (Alliance News) - Oil major BP PLC on Tuesday reported a sharp increase in profit for the first quarter in 2018 as its Upstream business delivered its best quarter since 2014.
BP's underlying replacement cost profit for the three months to March was USD2.59 billion, well above the same period a year ago's USD1.51 billion. It also is higher than the USD2.11 billion posted in the last quarter of 2017.
On a reported bases, RC profit was USD2.39 billion, up from USD1.41 billion and a swing to a profit after a loss of USD583.0 million in the last three months of 2017.
Operating cash flow excluding Deepwater Horizon payments was USD5.4 billion compared to USD4.4 billion a year prior.
BP's group production increased 5.7% year-on-year to 3.7 million barrels of oil equivalent per day.
The company is paying a quarterly dividend of 10 US cents, unchanged from the last quarter of 2017.
This strong performance, BP said, was mainly due to strong profit growth in its Upstream business, offset by higher taxes.
Underlying RC profit before interest and tax in Upstream was USD3.16 billion, well over double the USD1.37 billion in recorded a year prior. This, BP said, reflected higher liquids and gas realisations, increased production, and better gas marketing and trading.
The division's production for the quarter was 2.6 million barrels of oil equivalent per day, up 9.1% on the same period a year before. The division benefited from the start of production at the Atoll Phase One project in Egypt, with another six major projects expected to come online in 2018.
Second quarter production is expected to be lower than the first due to the expiration of its Abu Dhabi offshore concession and seasonal maintenance work.
Downstream underlying RC profit before income and tax climbed slightly year-on-year to USD1.83 billion from USD1.74 billion.
Looking ahead in Downstream, BP is expected seasonally higher refining margins in the second quarter but lower discounts for North American heavy crude oil, as well as higher turnaround activity.
Chief Executive Bob Dudley said: "We have delivered another strong set of results. Our safe and reliable operations and strong financial delivery have continued into 2018. Underlying profit was up 23% on the previous quarter and was our best quarterly result in three years.
"With rising output from our new major projects and excellent reliability, Upstream production was 9% higher than a year earlier."
Dudley added: "Moving through 2018 we're determined to keep delivering our operational targets and maintaining capital discipline while growing cash flow and returns."
Related Shares:
BP