Health Care

BP beats on Q2 net profit

BP beats on Q2 net profit”

It's a hard time to be an oil giant: oil prices have been hovering around the $50 mark for months now, leaving oil companies (and the likes of Opec) looking for ways to cut costs, hence that Angolan write-off.

BP PLC (BP.L, BP_UN.TO, BP) reported Tuesday that its second-quarter profit before taxation was $928 million, compared to loss of $3.38 billion past year.

BP said its oil and gas production would be broadly flat in the third quarter as further project start-ups outweigh the effect of maintenance. "The $35-40 range remains a realistic short-term ambition for us as a company". Indeed, the group has indicated that $60 a barrel was needed to cover its dividend and capital expenditure for this year.

"It's a tough environment and could remain that way for some time", Dudley said on a conference call with analysts. But he sounded a rare note of optimism, calling $50 a barrel "a pretty good fairway for us going forward". Benchmark Brent crude traded at $52.84 a barrel.

The oil industry has been gloomy about prices in recent days. Oil and gas output was 10% higher at 3.54 MMbpd, in part reflecting a deal to buy into a large concession in Abu Dhabi.

That was a riff on a phrase Mr. Dudley coined about prices back in 2015, when he said they would be "lower for longer". As Macondo payments fall to $2 billion next year and $1 billion in 2019, the market will "start to react" to BP's new projects, Gilvary said. "They will stay underpinned by strong demand.They will start to drop off into the fourth quarter".

More news: Jefferies Group Brokers Lift Earnings Estimates for Statoil ASA (STO)

Mr. Gilvary highlighted the company's improved cash flow, saying BP was covering its expenses with cash generated from operations rather than debt. Operating cashflow rose by $3bn to $11.3bn in the first half of the year, although payments from the Gulf of Mexico oil spill rose by $1.8bn to $4.3bn. The company reached a $20 billion settlement in 2015 with federal and state authorities that must be paid out over nearly two decades. BP's profits and cash flow have consistently lagged behind its peers.

BP's quarterly underlying replacement cost profit, the company's definition of net income, came in at $684m, topping the $500m forecast in a company-provided analyst consensus.

Oil companies have been cutting costs and selling assets to adjust to lower oil prices, which early past year plunged to their lowest levels in more than a decade.

The company increased its oil-and-gas production by nearly 10% compared with a year earlier.

Overall, BP's exploration-and-production unit was buoyed by a raft of discoveries and new projects in Senegal, Egypt, the U.K. North Sea, Trinidad and Tobago, and India.

Further, BP announced a quarterly dividend of 10.00 cents per ordinary share or $0.600 per ADS, same as past year.



Like this

loading...
loading...

Latest


01 August 2017
Most Active Stock: Delcath Systems, Inc. (DCTH)
Digging a bit further, company shares have been noted -98.48% off the 52 week high and 556.00% away from the 52 week low. Consequently Keryx Biopharm Inc (NASDAQ:KERX)'s weekly and monthly volatility is 5.65%, 5.26% respectively.

01 August 2017
Alia Bhatt, Vicky Kaushal's Raazi to release on this date
Said Alia, "It's based on a true story and it's important to get the layers of the character right". There are some action pieces too. "Alia Bhatt is definitely shooting in Kashmir", says the source.

01 August 2017
Officer buys diapers for a mother caught trying to steal them
The woman was checking out with her infant son in her arms when she realized she couldn't afford her groceries and the diapers. The city of Laurel has since referred the woman to an advocacy service that helps struggling families in the area.

01 August 2017
Wedding photographer wins $1M defamation lawsuit
There's someone on the other side of that keyboard and they have a family and they have businesses", Polito said. "Ms. Neely and Andrew Moldovan claimed pictures of their special day were "held hostage" by Andrea Polito .

01 August 2017
Millennials and Generation Xers outvoted baby boomers in 2016
That means those younger voters may be more susceptible to overtures from the other side of the aisle than their predecessors. Just 49 percent of eligible voters from that generation voted in 2016, compared with 69 percent of eligible baby boomers.

01 August 2017
"That's just Texas", 60-year-old woman shoots, kills home intruder
Harris County Sheriff's officials say two men broke into the unnamed victim's home through an open garage. Investigators say a woman near Katy turned the tables on a pair of intruders.

01 August 2017
BidaskClub Upgrades Expeditors International of Washington, Inc. (NASDAQ:EXPD) to Buy
MALONE MICHAEL J sold $1.23 million worth of Expeditors International of Washington (NASDAQ:EXPD) on Wednesday, February 22. Expeditors International of Washington (NASDAQ:EXPD) previously issued its periodic earnings reports on early Tue, May 2nd.

01 August 2017
Deval Patrick reportedly being urged to run for president by Obama supporters
Democrats must focus on the future, Patrick said. "We have done it in the past, and we can do it again", he said on the podcast. According to a cover story on Politico Magazine Tuesday morning, the former MA governor is their number one choice.

01 August 2017
Senate Will Vote on Christopher Wray, Trump's Pick for FBI Director
He was a federal prosecutor in the USA attorney's office for the Northern District of Georgia from May 1997 to May 2001. Asserting his independence, he said, "My loyalty is to the Constitution and the rule of law".

01 August 2017
Nigeria's Iheanacho to undergo medical at Leicester City
Now being represented by Just Football, Iheanacho pulled out of a contract with First Eleven and Henry Galeano two years ago. The Manchester City forward scored nine goals (and assisted three), having only started equally as many games last season.