Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

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

BP PLC (BP.)

Delayed Quote. Delayed  - 09/27 05:35:17 pm
428.2 GBp   -0.88%
09/27 FTSE hovers near one-week lows as StanChart slides
09/27DJBP Signs Amendments to Three Concession in Egypt
09/27 BP : Signs Amendments To Three Concessions In Egypt
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

BP Profit Falls As Gulf Disaster Still Casts Pall

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/01/2012 | 10:26am CEST

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

 
   By Alexis Flynn 
   Of  
 

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; alexis.flynn@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BP PLC
09/27 FTSE hovers near one-week lows as StanChart slides
09/27DJBP Signs Amendments to Three Concession in Egypt
09/27 BP : Signs Amendments To Three Concessions In Egypt
09/27 BP : signs three concession amendments and reaches record production for the Noo..
09/27 BP : signs three concession amendments with Egypt
09/26 No sign of oil freeze at home as Russia meets OPEC
09/26 BP : protest turns into flash-mob
09/26 BP : 170 bodies recovered so far in migrant boat disaster
09/24 BP : Whatcom County settles BP refinery tax dispute
09/24 KAMILOV : Natural biological fund of Aral Sea region should be preserved
More news
Sector news : Oil & Gas Refining and Marketing - NEC
09/27DJCHEVRON : Helicopter Crashes En Route to Chevron Oil Platform in Angola
09/27 When deals go bad - China state firm managers spooked by new liability rules
09/27 High stakes for India's $84 billion airwave auction after Vodafone play
09/26 CHINA PETROLEUM & CHEMICAL : to prosecute former top executives for alleged graf..
09/26DJAsian Shares Down on U.S. Slide, Oil Jitters
More sector news : Oil & Gas Refining and Marketing - NEC
News from SeekingAlpha
09/27 Warning - Oil Inventory Data Could Hurt If This Theory Holds Water
09/27 BP signs three concession amendments with Egypt
09/27 India To Ratify COP21 Agreement; Legal Attempts To Make U.S. The Spoiler Cont..
09/26 BP tanker carrying U.S. crude discharged at Curacao after 100-day wait
09/26 BP'S OFFSHORE OIL AND GAS PROJECT IN : Why?
Advertisement
Financials ($)
Sales 2016 185 470 M
EBIT 2016 6 000 M
Net income 2016 2 447 M
Debt 2016 32 758 M
Yield 2016 6,96%
P/E ratio 2016 42,63
P/E ratio 2017 14,61
EV / Sales 2016 0,75x
EV / Sales 2017 0,61x
Capitalization 106 001 M
More Financials
Chart BP PLC
Duration : Period :
BP plc Technical Analysis Chart | BP. | GB0007980591 | 4-Traders
Full-screen chart
Technical analysis trends BP PLC
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 6,15 $
Spread / Average Target 9,7%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Robert W. Dudley Group Chief Executive Officer & Executive Director
Carl-Henric Svanberg Chairman
Brian Gilvary Group Chief Financial Officer & Executive Director
Cynthia Blum Carroll Independent Non-Executive Director
Paul Milton Anderson Independent Non-Executive Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
BP PLC23.42%106 001
EXXON MOBIL CORPORATIO..6.56%344 421
ROYAL DUTCH SHELL A2.13%197 640
CHINA PETROLEUM & CHEM..-2.22%86 471
SAUDI BASIC INDUSTRIES..--.--%66 000
RELIANCE INDUSTRIES LI..9.03%54 012
More Results