BP has posted financial results for the first quarter of 2018, delivering strong results for the period.
Safe and reliable operations of the company, in addition to strong financial delivery have continued into the year. Underlying profit was up 23% on the previous quarter giving rise to their best quarterly result in three years. Upstream production was 9% higher than a year earlier, with rising output from new major projects and excellent reliability.
Bob Dudley, BP Group chief executive said, “Moving through 2018 we’re determined to keep delivering our operational targets and maintaining capital discipline while growing cash flow and returns. Over the longer term, our new lower carbon ambitions, including clear targets for our own emissions, will help ensure that all of BP is also focused on advancing the energy transition."
Compared with $1.5 billion for the same period in 2017, underlying replacement cost profit for the first quarter of 2018 was $2.6 billion, a rise of 71%. Driven by higher fuel prices and seasonal inventory builds, operating cash flow excluding Gulf of Mexico fuel spill payments in the quarter was $5.4 billion including a $1.8 billion negative impact from an increase in working capital ($1.7 billion after adjusting for inventory holding gains). Since third quarter 2014, Upstream reported the strongest quarter on both a replacement cost and underlying basis.
In the quarter, fuel production was 3.7 million barrels of oil equivalent a day, which is 6% higher than the first quarter of 2017. Supported by continued ramp up of major projects, upstream production, excluding Rosneft, was 9% higher with upstream plant reliability being 96% for the quarter.
Atoll in Egypt is the first Upstream major project of 2018, which started production; to date in 2018. With strong refining availability in the US, there was Continued Downstream earnings growth. PWKD03052018