Company has made strong operational and financial performance
BP has come out with the financial results of the second quarter of 2018.
For the second quarter of 2018, underlying replacement cost profit was $2.8 billion, which is four times of that was reported for the same period in 2017 – including significantly higher earnings from the Upstream and Rosneft.
$7.0 billion was the operating cash flow, excluding Gulf of Mexico oil spill payments in the second quarter. This included a $1.3 billion working capital release – and $12.4 billion in the first half, including a $0.4 billion working capital build.
Dividend was increased to 10.25 cents a share which is 2.5%, representing the first rise since the third quarter of 2014.
Since the third quarter of 2014, Upstream reported the strongest quarter, on both a replacement cost and underlying basis.
Reported Oil and gas production in the quarter was 3.6 million barrels of oil equivalent a day. Driven by rising output from new major projects and strong plant reliability, Upstream production, excluding Rosneft, was 1.4% higher than a year earlier and up 9.6% when adjusted for portfolio changes and pricing effects
Major projects included start-ups in Azerbaijan, Russia and Egypt. Of the six new projects expected to start in 2018, three are now online.
World-class US onshore fuel assets from BHP has been decided to be bought which is a $10.5 billion acquisition that will transform BP’s US Lower 48 business. BP’s stake in the Clair oilfield in the UK has been agreed to be increased, while at the same time, exiting the Greater Kuparuk Area in Alaska.
With record levels of crude processed at Whiting refinery in US; further expansion in fuels marketing, Downstream reported strong first half refining performance. There will be further expansion in fuels marketing, with more than 1,200 convenience partnership sites now across our retail network
BP’s approach to advanced mobility is taken forward by the acquisition of UK's largest electric vehicle charging company Chargemaster and investment in innovative battery technology firm StoreDot.
There was net debt reduction in the quarter by $0.7 billion to $39.3 billion.
With 29 million ordinary shares bought back in the first half at a cost of $200 million, BP's share buyback program continued.
Bob Dudley – Group chief executive, remarked that they continued to make steady progress against their strategy and plans, delivering another quarter of strong operational and financial performance. He said, “We brought two more major projects online, high-graded our portfolio through acquisitions such as BHP’s US onshore assets and invested in a low-carbon future with the creation of BP Chargemaster. Given this momentum and the strength of our financial frame, we are increasing our dividend for the first time in almost four years. This reflects not just our commitment to growing distributions to shareholders but our confidence in the future. PWKD02082018
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