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BP moves back into the black during the 2nd quarter

BP moved back into the black during the 2nd quarter of 2017 thanks to an improved performance in its upstream arm.

BP moves back into the black during the 2nd quarter BP moves back into the black during the 2nd quarter


BP moved back into the black during the 2nd quarter of 2017 thanks to an improved performance in its upstream arm, the company reported on August 1, 2017.

 

The oil major swung from a replacement cost loss of $2.25 bln one year ago to a profit of $553 mln over the 3 months to June.

Within that, replacement cost profits at its upstream division reached $710.0 mln, versus just $29 mln seen in the same period of 2016.

 

However, on an underlying basis, after tax RC profits in fact fell, from $720 mln in the year-ago quarter to $68 mln as the company's interest rate burden and tax payments increased - especially the latter.

In the company's results statement, management opted to highlight the production growth of 6% seen in the 1st 6 months of 2017, alongside a reduction of 18% in its unit operating costs.

 

Net debt at period-end stood at $39.8 bln, up from $30.9 bln one year back, for an increase in its ratio of net debt from 24.7% to 28.8%.

According to BP's finance chief, Brian Gilvary, payments linked to the 2010 Gulf of Mexico oil spill disaster were the main cause of the increased debt.

 

Yet the company's debt pile was expected to reduce in the 2nd half of 2017 as the associated compensation payments slowed down and proceeds from its divestment plan began to flow in.

BP also said it was on track to increase its output of oil by 800,000 barrels a day by 2020, with 3 new projects having already come online during 2017.

 

Operating cash flows at BP, excluding the impact of the Gulf of Mexico oil spill, was at $6.9 bln at quarter-end, up from $5.3 bln.

Including the related post-tax amounts cash flows were at $4.9 bln, versus $3.9 bln a year-ago.

 

BP CEO Bob Dudley 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.»

Source : Neftegaz.RU