BP profits more than double on strong oil and gas output

Writer, Stock Market Wire
Tuesday, February 5, 2019 - 07:27

BP said Tuesday profits more than doubled topping the company's expectations following increased oil and gas output.

BP reported underlying profits on a replacement cost (RC) basis -- a closely watched measure to gauge performance -- of $12.7bn for 2018, compared with $6.2bn a year earlier. That topped its consensus forecasts for underlying RC profit of $11.88bn.

For the fourth quarter, BP booked underlying RC profit of $3.5 billion, up from $2.1 billion for the same period of 2017.

Upstream production, which excluded the company's share of Rosneft output, rose 8.2% from a year ago.

BP generated proceeds of $3.5bn from selling assets last year and said it intended to complete more than $10bn of sales over the next two years.

The company flagged a non-operating charge of $1.19bn, compared with a $527m charge in 2017, the company said.

Operating cash flow, excluding Gulf of Mexico oil spill payments, rose to £26.1bn compared with £24.1bn in 2017. Gulf of Mexico oil spill payments in 2018 declined to $3.2bn, from $5.2bn billion a year earlier.

BP expected 2019 organic capital expenditure to be in the range of $15-17bn.

The dividend was increased by 2.5% to 10 cents per share.

'We expect full-year 2019 underlying production to be higher than 2018 due to major projects. The actual reported outcome will depend on the exact timing of project start-ups, acquisition and divestment activities, OPEC quotas and entitlement impacts in our production-sharing agreements,' the company said.

'We expect first-quarter 2019 reported production to be flat with fourth-quarter 2018 with divestments of assets in the North Sea and Alaska and turnaround and maintenance activities mainly in the high margin Gulf of Mexico region, offset by major project start-ups and the benefit of the BHP assets acquired by BPX Energy.'


Related content

Broker Forecast - JP Morgan Cazenove issues a broker note on BP PLC

JP Morgan Cazenove today reaffirms its overweight investment rating on BP PLC (LON:BP.) and raised its price target to 625p (from 600p).

Broker Forecasts data...

Fri, 12/04/2019 - 11:20


Broker Forecast - HSBC issues a broker note on BP PLC

HSBC today reaffirms its buy investment rating on BP PLC (LON:BP.) and cut its price target to 650p (from 660p).

Broker Forecasts data provided by...

Wed, 10/04/2019 - 14:00


Saga admits failure and Homeserve is an export champion


“The FTSE 100 takes a knock on Thursday, falling 0.6% to 7,377 amid a mixture of big names being weak such as ...

Thu, 04/04/2019 - 09:55


Stagecoach moves up a gear and AA continues to invest despite growing debts

“Sterling made a small comeback on Wednesday morning, up 0.4% against the US dollar and gaining 0.3% against the euro, as the Brexit chaos rumbles...

Wed, 03/04/2019 - 10:03


AstraZeneca and TUI

“Shanghai’s SSE Composite index jumped 3.2% on hopes that the US and China were making progress with trade talks. This optimism also gave a boost...

Fri, 29/03/2019 - 10:05