BP Beats 1Q Profit Expectations, Sees Solid Production
BP plc reported adjusted net income of $3.2 billion for the first quarter, beating consensus expectation by 4 percent according to New York-based investment bank Jefferies – whose analysts themselves had been expecting an even better figure of $3.3 billion.
BP's production was slightly better than Jefferies expected, with the firm producing at an average first-quarter rate of 2.13 million barrels per day – 2 percent greater than Jefferies' estimate.
BP's Upstream business reported $4.4 billion underlying pre-tax replacement cost profit for the quarter, compared with $3.8 billion for the previous quarter and $5.7 billion for 1Q 2013. The firm said that after its decision to create a separate BP business around onshore oil and gas activities in the United States, it has decided not to proceed with development plans in the Utica shale.
The Downstream unit reported $1 billion underlying pre-tax replacement cost profit for the first quarter, compared with $70 million for 4Q 2013 and $1.6 billion for 1Q 2013. The result here was primarily affected by a weaker refining environment.
BP added that it is now nearing completion of its current $8-billion share buyback program, with $7.6 billion spent repurchasing shares for cancellation. So far, the firm has agreed divestments totaling more than $3 billion – including the recent agreement to divest a number of assets in Alaska – towards its expectation of agreeing $10 billion in additional divestments by the end of 2015.
Commenting on the results, BP Group Chief Executive Bob Dudley said in a company statement:
"This is a very solid start to 2014. Operating cash flow was strong in the first quarter, we have seen further exploration success and upstream project start-ups, and the upgraded Whiting refinery is ramping up steadily. We remain confident of delivering our 10-point plan targets that we set in 2011 for delivery in 2014.
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Operates 32 Offshore Rigs
- Exxon, BP Targeted in NYC Suit That Relies on 'Nuisance' Theory (Jan 10)
- Owners of Louisiana-Illinois Pipeline Eye Reversal Next Steps (Dec 21)
- Canadian Offshore Oil Interest Grows As Pipeline Woes Sink Alberta Prices (Dec 20)