BP Slips To Loss In Q1, Sees Positive Downstream Activity In Q2; Stock Up

(RTTNews) - British oil giant BP Plc (BP.L, BP_UN.TO, BP) reported Tuesday a pre-tax loss in its first quarter, compared to last year's profit, as revenues were weak with lower oil prices. The company further announced an unchanged dividend.

Looking ahead, BP expects second-quarter Upstream production to be lower than the first quarter, reflecting PSA entitlement impacts and seasonal turnaround and maintenance activity. In downstream, the company expects a significantly higher level of turnaround activity in the second quarter, particularly in the U.S., and some seasonal improvement in industry refining Margins. In London, BP shares were gaining around 4 percent.

For the first quarter, loss before tax was $865 million, compared to pre-tax profit of $2.28 billion a year ago. Loss to shareholders was $583 million, compared to profit of $2.6 billion in the previous year. Loss per ADS was $0.19 compared to profit of $0.85.

Replacement cost loss was $485 million, compared to profit of $2.1 billion, a year ago. Replacement cost loss per ADS was $0.16 compared to profit of $0.69.

After adjusting for items, first-quarter underlying replacement cost profit was $532 million, compared to $2.58 billion for the first quarter of 2015. Underlying replacement cost profit per ADS was $0.17 compared to $0.85 last year.

Sales and other operating revenues were $38.51 billion, sharply lower than $55.52 billion a year ago. Total revenues and other income decreased to $39.17 billion from $56.24 billion.

BP's overall production of oil and gas, including Rosneft, was 3.5 million barrels of oil and gas equivalent a day or mmboe/d. Excluding Rosneft, BP's Upstream production was 2.43 mmboe/d, 5.2 percent higher than a year earlier. Underlying production for the quarter decreased by 1.1 percent.

The Brent oil marker price averaged $34 a barrel in the quarter, compared to $54 in the prior year. Refining margins were at the lowest quarterly average for over five years. Brent prices have so far averaged $40 in the second quarter.

Further, BP announced an unchanged dividend for the quarter of 10 cents per ordinary share or $0.600 per ADS, expected to be paid in June.

BP group Chief Executive Bob Dudley said, "Despite the challenging environment, we are driving towards our near-term goal of rebalancing BP's cash flows. Operational performance is strong and our work to reset costs has considerable momentum and is delivering results. Furthermore, development of our next wave of material upstream projects is well on track."

In London, BP shares were trading at 375.15 pence, up 4.11 percent.