Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  BP    BP.   GB0007980591

BP (BP.)
Mes dernières consult.
Most popular
News SummaryMost relevantAll newsSector newsTweets

BP Profit Falls As Gulf Disaster Still Casts Pall

share with twitter share with LinkedIn share with facebook
share via e-mail
05/01/2012 | 10:26am CET

(Adds details in second paragraph, eighth, ninth, tenth and eleven paragraphs.)

   By Alexis Flynn 

BP PLC (BP) Tuesday posted a drop in first-quarter profits as the energy giant's asset sales after its U.S. oil spill contributed to a drop in production, preventing it from cashing in on bumper crude oil prices to the same extent as some rivals.

BP's results underscored the impact that the Deepwater Horizon disaster continues to have on the company more than two years after a rig leased by the firm exploded in the Gulf of Mexico, killing 11 and setting off the worst offshore oil spill in U.S. history. While BP's financial health is now sufficiently robust to withstand the multibillion-dollar costs stemming from the 2010 explosion and oil spill, production has yet to return to previous levels.

The company said its clean replacement cost profit, a keenly watched figure that strips out gains or losses from inventories and other non-operating items, dropped 12.8% for the period to $4.80 billion, compared with $5.50 billion for the first quarter of 2011. The adjusted figure is broadly comparable with net income under U.S. accounting rules.

This was below expectations of $5.10 billion in a Dow Jones Newswires poll of 10 analysts.

The London-based energy giant said net profit for the three months ended March 31 was $5.92 billion, compared with $7.25 billion for the first quarter of 2011.

While BP's profits were underpinned by high oil and gas prices, weaker production than in the corresponding period last year prevented it from benefiting in the manner of peer Royal Dutch Shell PLC (RDSB.LN), which last week posted a near 16% rise in first-quarter adjusted earnings.

Overall output declined 3% from a year ago, largely due to the continued shutdown of its 43,000-barrel-a-day Foinaven field in the U.K. North Sea and the continued impact of a wide-ranging asset sale program. Production at Foinaven was halted in January after a small leak was discovered in an underwater pipeline.

Total production was 3.471 million barrels of oil equivalent per day, compared with 3.578 million per day a year ago. Analysts had expected production to fall to 3.457 million barrels of oil equivalent per day.

By contrast, first-quarter production in 2010 -- the last period unaffected by the Gulf of Mexico disaster -- was 4.010 million barrels, some 13.4% more than current output.

Pretax profits at BP's refining and marketing business fell sharply from a year ago, dropping 58.8% to $856 million, as the higher cost of crude squeezed fuel product margins and slack consumer demand hurt the U.K. firm's retail business. This was still a significant improvement, however, on the $564 million pretax profit BP's downstream division reported in the previous quarter.

Total revenue for the quarter was up at $96.70 billion from $88.44 billion in the same period in 2011.

Diluted earnings per share were 30.74 cents, compared with 38.10 cents in the same period of the previous year.

BP shares opened Tuesday lower and at 0758 GMT, they were down 2.7% at 4335 pence. The stock has remained almost a third lower than it was before the Gulf of Mexico oil spill as investors continue to price in the risk of massive U.S. government fines.

Some analysts were phlegmatic about the company missing expectations, which they attributed to a quarterly "consolidation adjustment," based on a snapshot value of inventories at the end of quarter.

The accounting adjustment, totaling $541 million, reflects profits--made by BP's exploration and production unit selling oil at market-related prices to its refining business--not yet being realized as actual profits by BP as a whole, a BP spokesman said.

RBC Capital's Peter Hutton cited lagging production as a more pressing concern, while Jason Gammel of Macquarie Equities Research said this should be seen in the context of BP's massive asset sales undertaken in the wake of the Gulf spill.

"It's a part of an overall process [of divestiture and cost recovery]," said Gammel, adding that maintenance downtime has also had an impact.

-By Alexis Flynn, Dow Jones Newswires; +44 (0)20 7842 9317; [email protected]

Stocks mentioned in the article
ChangeLast1st jan.
BP -0.43% 461.4 Delayed Quote.-11.36%
ROYAL DUTCH SHELL -0.51% 25.37 Delayed Quote.-8.24%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on BP
10:02aSmiths posts weaker than expected first half, shares down 11 percent
03/22BP : M&S Simply Food Store Opens in Midhurst
03/21Chevron says it will not dispute climate science in U.S. lawsuit
03/21UK OIL OUTPUT SEEN RISING 9% THIS YE : industry group
03/21BP to drill first deepwater oil well in Mexican block in 2020
03/20BP : Appoints Susan Dio Chairman, President of BP America
03/20BP : Technology Outlook 2018
03/20BP : Essar Oil picks Trafigura, BP for USD 1 billion oil-backed loan
03/19BP : Technology to Lower Oil Extraction Costs
03/19BP : Galfar wins $95mn BP contract for gas gathering system
More news
News from SeekingAlpha
01:38aBP Is Dealing Itself A Great Hand For 2018 And Beyond 
03/22JACKUPS : Deep Dive Into The Latin American Segment 
03/22Trade Worries Weigh On Stocks, Facebook Owns Up, And Legendary Magazines Go O.. 
03/22WALL STREET BREAKFAST : Trade War Fears Rattle Investors 
03/21Addressing lawsuit, Chevron says it supports climate change consensus 
Financials ($)
Sales 2018 269 B
EBIT 2018 16 157 M
Net income 2018 8 644 M
Debt 2018 37 227 M
Yield 2018 5,96%
P/E ratio 2018 14,86
P/E ratio 2019 13,85
EV / Sales 2018 0,63x
EV / Sales 2019 0,60x
Capitalization 133 B
Chart BP
Duration : Period :
BP Technical Analysis Chart | BP. | GB0007980591 | 4-Traders
Technical analysis trends BP
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 7,42 $
Spread / Average Target 13%
EPS Revisions
Robert W. Dudley Group Chief Executive Officer & Executive Director
Carl-Henric Svanberg Chairman
Brian Gilvary Group Chief Financial Officer & Executive Director
Paul Milton Anderson Independent Non-Executive Director
Ian Edward Lamert Davis Senior Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
BP-11.36%133 115
SUNCOR ENERGY INC.-5.53%54 417