Home » Money

BP's profit surge 71% on higher oil prices and output

02 May, 2018, 02:06 | Author: Shawna Walton
  • Oil Prices Rise As BP Shuts Pipeline

The company said Tuesday its replacement cost profit - a number analogous to the net income that US oil companies report - was $2.4 billion in the first quarter, compared with $1.4 billion in the same period a year earlier.

Underlying profits were also up, with BP posting an underlying recurring cost profit of almost $2.6 billion, up from $1.5 billion a year earlier. This tops their initial prediction of $2.2 billion according to to a company-provided analytics survey.

Shares in the oil giant briefly hit their highest level since 2010 as the firm said underlying replacement cost profits jumped to a better-than-expected 2.6 billion U.S. dollars (£1.9 billion) for the first three months of 2018, up from 1.5 billion United States dollars (£1.1 billion) a year earlier.

"The spill payment in the first quarter was "$500 million more than I expected", although that probably means the burden will be lower later this year, said Redburn analyst Rob West, as quoted by Bloomberg.

Earnings after taxation, or bottom-line net profit, jumped to $2.5 billion (2.1 billion euros) in the three months to the end of March from a year earlier, BP said in a results statement.

"Our safe and reliable operations and strong financial delivery have continued into 2018", BP chief executive Bob Dudley said.

The bill included a final $1.2bn payment as part of a $20bn settlement with the US Department of Justice, but the giant still has a number of smaller legal bills to pay.

Chief Financial Officer Brian Gilvary said the London-listed company might consider raising the dividend later this year if oil prices remain near current levels and debt declines.

It has so far cost the group more than 65 billion United States dollars (£48 billion), and although BP has all the major settlements now under its belt, it still has a few smaller legal bills to pay.

Brent crude averaged $66.82 in the first quarter, 24 percent higher than a year earlier.

Investors are scrutinizing cash flow as an indication of Big Oil's ability to pass on the rewards of higher prices through share buybacks. Gilvary also raised the prospect of increasing dividends. At the same time, Mr Dudley has also pledged to keep a tight rein on spending and costs.

That set BP shares on an upward trajectory because it comfortably beat market expectations of $2.2 billion. Off-topic, inappropriate or insulting comments will be removed.

Recommended:



Popular

Kanye West reveals liposuction and addiction to opioids before hospitalization
Not everyone in the TMZ newsroom was thrilled with West's appearance. We texting each other, it's positive energy", said West. You was there for 400 years and it's all of y'all.

Cowboys acquire WR Austin from Rams
Anything that improves on his 9.1 career yards per catch is welcome, though. He was a first-round pick in 2013 out of West Virginia. Expect to see the Cowboys end up winning this trade.

The Oculus Go is already hitting store shelves
The hardware is the company's first standalone headset and has launched with more than 1,000 apps, games and experiences. Oculus Go is available for purchase on Oculus's website and via retailers including Amazon , Best Buy , and Newegg .

Comedian Under Fire for Monologue at the White House Correspondents Dinner
On Monday he said the dinner was "a total disaster and an embarrassment to our great Country and all that it stands for". There's been a backlash and a backlash TO the backlash, with supporters defending Wolf's controversial jokes.

Tristan Thompson breaks Instagram silence
In a teaser clip for her latest appearance on Ellen , Kim revealed how she felt when the news broke, "Poor Khloe . Its a really sad situation all over.

Pornstar Stormy Daniels sues Donald Trump for defamation
Clifford to hated, contempt, ridicule, and shame, and discouraged others from associating or dealing with her". "Mr. Stormy Daniels' attorney has filed that threatened defamation lawsuit against President Donald Trump .

'Glee' Alum Lea Michele Announces Engagement
People reports that Reich personally designed the elongated radian-cut ring with Leor Yerushalmi and The Jewelers of Las Vegas. In the photo below, a clearly effusive Michele poses beside seaside with her ring-bearing hand covering her smiling face.

Great Barrier Reef $500 million funding to breed resilient coral
Moreover, $58 million will be committed to fight crown-of-thorns starfish, the Sydney Morning Herald newspaper reported.

PSG coach Unai Emery leaving at the end of the season
Emery was previously in charge of Spanish side Sevilla and won three consecutive Europa League titles with them. Emery, he said, was "a model of commitment and ambition".

Local agencies participate in National Prescription Drug Take Back Day
Police say the drugs go through a chain of custody before being placed in barrels of gasoline to be destroyed. Boardman Police Department filled four boxes and Canfield filled about two.