LONDON (AP) — BP says second-quarter earnings were flat as increased production offset lower oil prices.

Its underlying replacement cost profit — the industry's preferred measure — remained at $2.81 billion.

Production rose 4% from a year earlier to the equivalent of 3.8 million barrels of oil a day. That helped counter a 7.4% decline in the price of Brent crude, the international oil benchmark.

Oil companies have been preparing for an era of lower prices by cutting costs and streamlining operations since Brent dropped below $30 a barrel in January 2016.

CEO Bob Dudley said Tuesday that "BP is right on target" at the mid-point of its five-year plan.

BP expects third-quarter production to fall due to seasonal maintenance and the impact of Hurricane Barry on operations in the Gulf of Mexico.