Tags: EU | Britain | Earns | BP

BP Profit More Than Doubles on High Crude Prices

Tuesday, 27 April 2010 01:41 PM EDT

BP PLC, Europe's second-largest oil company, said Tuesday that first-quarter profit more than doubled from a year earlier to $6.1 billion due to higher crude prices and lower production costs and taxes.

Despite handily beating analysts' forecasts, BP shares fell slightly Tuesday as the market continued to worry about the impact of the oil spill from the sunken Deepwater Horizon rig which BP operates in the Gulf of Mexico.

BP's net profit compared with $2.6 billion in the first quarter of 2009 and $4.3 billion in the fourth quarter.

Replacement cost profit, a key oil industry measure, rose 62 percent to $5.6 billion from $3.4 billion in the fourth quarter and $2.4 billion in the first quarter a year earlier.

Revenue of $74.4 billion was up 1 percent from $73.6 billion in the fourth quarter and 55 percent higher than revenue of $48.1 billion a year earlier.

The quarterly dividend of $0.14 a share was unchanged from a year ago.

"As strong as this performance was, we expect near-term sentiment toward BP to be dominated by the sinking of Transocean's Deepwater Horizon rig and BP's efforts to contain the subsequent spill. This issue aside, we still see better momentum and value in Royal Dutch Shell," which reports results tomorrow, said Gordon Gray and James Evans, analysts at Collins Stewart.

BP shares were down 0.6 percent at 622.8 pence on the London Stock Exchange. They traded at 655.4 pence on the day before the oil rig disaster.

"Progress has been driven by a near doubling in the oil price, a 3 percent reduction in unit production costs, along with favorable accounting effects and a lower tax bill," said Keith Bowman, analyst at Hargreaves Lansdown Stockbrokers.

"On the downside, the accident in the Gulf of Mexico continues to overshadow, while refining remains challenging and group production levels flat," Bowman added.

Oil prices in the first quarter averaged $76 a barrel compared to $41 a year earlier. On Monday, light sweet crude traded at around $84 a barrel.

Production for the quarter was 4 million barrels a day, broadly unchanged from a year earlier, but BP repeated earlier guidance that it expected full-year production to be down slightly in 2010.

© Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Markets
BP PLC, Europe's second-largest oil company, said Tuesday that first-quarter profit more than doubled from a year earlier to $6.1 billion due to higher crude prices and lower production costs and taxes.Despite handily beating analysts' forecasts, BP shares fell slightly...
EU,Britain,Earns,BP
367
2010-41-27
Tuesday, 27 April 2010 01:41 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved