MOSCOW (MRC) -- BP almost tripled its profits in the first three months of this year as the UK oil group benefited from higher oil prices to deliver better than-expected quarterly results, said The Financial Times.
Profits on an underlying replacement cost basis – the main measure watched by analysts – were USD1.5bn.
This was up from USD532m in the first quarter of 2016 and higher than the USD1.26bn consensus forecast by analysts.
The results added to evidence of recovery in the sector after an 80 per cent increase in oil prices from the 12-year lows recorded early last year. ExxonMobil and Chevron, the two biggest US oil groups, both last week beat market expectations with sharply higher first quarter earnings.
BP’s operating cash flow increased strongly to USD4.4bn, excluding expenses related to the Deepwater Horizon oil spill, from USD3bn in the same period last year. This helped BP keep its dividend steady at 10 cents per share despite a series of recent acquisitions to replenish its oil and gas reserves.
Production rose 5 per cent in the quarter to 3.5m barrels per day as BP began to benefit from the first of several new projects due to come on stream in coming months.
As MRC informed earlier, BP is seeking buyers for its 50% stake in Chinese petrochemicals joint venture SECCO, its largest investment in China, in a deal sources said could fetch USD2-USD3 B.
BP is a leading producer of oil and gas and produces enough energy annually to light nearly the entire country for a year. Employing about 17,000 people across the country, BP supports more than 170,000 additional jobs through all of its business activities.
MRC