This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-39776798
The article has changed 4 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
BP profits helped by higher oil prices | BP profits helped by higher oil prices |
(35 minutes later) | |
The recent increase in oil prices has helped BP to record a healthy profit for the three months to March. | The recent increase in oil prices has helped BP to record a healthy profit for the three months to March. |
The $1.4bn (£1.1bn) profit, on the replacement cost measure, compared with a $485m loss a year earlier. | The $1.4bn (£1.1bn) profit, on the replacement cost measure, compared with a $485m loss a year earlier. |
Oil prices have been about 35% higher in the first three months of 2017 compared with a year earlier, boosting revenue from BP's core oil and gas production division. | Oil prices have been about 35% higher in the first three months of 2017 compared with a year earlier, boosting revenue from BP's core oil and gas production division. |
BP chief executive Bob Dudley said: "Our year has started well." | BP chief executive Bob Dudley said: "Our year has started well." |
He added: "BP is focused on the disciplined delivery of our plans. First quarter earnings and cash flow were robust." | He added: "BP is focused on the disciplined delivery of our plans. First quarter earnings and cash flow were robust." |
New projects | New projects |
Underlying replacement cost profit - the company's preferred measure - was $1.5bn compared with $532m a year ago. | Underlying replacement cost profit - the company's preferred measure - was $1.5bn compared with $532m a year ago. |
And operating cash flow rose to $4.4bn from $3bn a year earlier | And operating cash flow rose to $4.4bn from $3bn a year earlier |
Reported oil and gas production was 5% higher than same period in 2016. | Reported oil and gas production was 5% higher than same period in 2016. |
BP held the quarterly dividend at 10 cents. Given the size of BP, the payout is watched closely by investors. | BP held the quarterly dividend at 10 cents. Given the size of BP, the payout is watched closely by investors. |
The London-based giant is set to begin eight projects this year - including in Oman and Azerbaijan - the largest number in its history in a year. | The London-based giant is set to begin eight projects this year - including in Oman and Azerbaijan - the largest number in its history in a year. |
Meanwhile, it hopes to add 800,000 barrels a day of new production by the end of the decade. | Meanwhile, it hopes to add 800,000 barrels a day of new production by the end of the decade. |
"Rising production from new upstream projects is expected to drive a material improvement in operating cash flow from the second half of 2017," BP said in its results statement. | "Rising production from new upstream projects is expected to drive a material improvement in operating cash flow from the second half of 2017," BP said in its results statement. |
Michael Hewson, chief market analyst at CMC Markets UK, said: "Earlier this year BP management raised the price it needed oil prices to be to $60 a barrel to break even, after reporting an annual loss of $542m in its oil and gas upstream division at the end of the last fiscal year. | |
"Though Brent crude prices did get close to that $60 level in February they have struggled ever since, despite the output freeze by Opec that is due to be reviewed later this month." | |
Pay row | Pay row |
The figures come after strong earnings from US peers ExxonMobil and Chevron last week as the oil industry benefits from a rebound in crude prices, which hit near 13-year lows in early 2016. | The figures come after strong earnings from US peers ExxonMobil and Chevron last week as the oil industry benefits from a rebound in crude prices, which hit near 13-year lows in early 2016. |
Royal Dutch Shell is also expected to post a leap in profits when it reports later this week. | Royal Dutch Shell is also expected to post a leap in profits when it reports later this week. |
Last month, BP slashed Mr Dudley's 2016 pay package by 40% and cut his maximum earnings by $3.7m. | Last month, BP slashed Mr Dudley's 2016 pay package by 40% and cut his maximum earnings by $3.7m. |
Its annual report showed Mr Dudley's pay was reduced to $11.6m as it looked to head off a repeat of last year's shareholder revolt against his remuneration. | Its annual report showed Mr Dudley's pay was reduced to $11.6m as it looked to head off a repeat of last year's shareholder revolt against his remuneration. |