Shares of BP Plc (BP.L,BP_UN.TO,BP) were gaining around 4 percent in the early morning trading in London after the energy giant reported Tuesday a replacement cost profit in its second quarter, compared to hefty loss last year. Quarterly sales climbed from last year with increased production.
Bob Dudley – Group chief executive, said, “We continue to position BP for the new oil price environment, with a continued tight focus on costs, efficiency and discipline in capital spending. We delivered strong operational performance in the first half of 2017 and have considerable strategic momentum coming into the rest of the year and 2018, with rising production from our new Upstream projects and marketing growth in the Downstream.”
For the second quarter, profit before taxation was $928 million, compared to loss of $3.38 billion last year. Attributable profit for the quarter was $144 million, compared with a loss of $1.42 billion last year.
The second-quarter replacement cost or RC profit was $553 million, compared with a loss of $2.25 billion for the same period in 2016.
The results included a pre-tax charge of $347 million to reflect the latest estimate for claims related to the Gulf of Mexico oil spill, while prior year’s pre-tax charge was $5.11 billion.
The results also reflected $753 million exploration write-off, predominantly in Angola as BP decided to exit some exploration assets.
Underlying RC profit before interest and tax was $2.17 billion, higher than last year’s $1.29 billion. Underlying attributable RC profit was $684 million, compared with $720 million a year ago.
RC profit per ADS was $0.17, compared to loss of $0.72 last year. Underlying RC profit per ADS was $0.21, compared to $0.23 a year ago.
On average, six analysts polled by Thomson Reuters expected earnings of $0.18 per share for the quarter. Analysts’ estimates typically exclude special items.
Total revenues and other income grew to $57.37 billion from prior year’s $47.28 billion. Sales and other operating revenues climbed to $56.51 billion from prior year’s $46.44 billion last year. Analysts were looking for revenues of $48.88 billion.
Second-quarter Upstream production was 10 percent higher than to 2,431mboe/d. Underlying production for the quarter increased 7.0 percent, due to the ramp-up of major projects.
Further, BP announced a quarterly dividend of 10.00 cents per ordinary share or $0.600 per ADS, same as last year. The corresponding amount in sterling will be announced on September 127….