Oil and Gas Press

BP’s first-quarter replacement cost profit was $6,588 million

BP’s first-quarter replacement cost profit was $6,588 million, compared with $4,444 million a year ago, an increase of 48%.

Non-operating items and fair value accounting effects for the first quarter had a net $4 million unfavourable impact compared to a net $36 million favourable impact in the first quarter of 2007 - see further details on page 3. Non-operating items for the first quarter included a pre-tax charge of $307 million for restructuring, integration and rationalization costs associated with BP’s forward agenda.

Net cash provided by operating activities for the quarter was $10.9 billion compared with $8.0 billion a year ago.

The effective tax rate on replacement cost profit(b) for the quarter was 37%; the rate was 34% a year ago.

Net debt at the end of the quarter was $23.8 billion. The ratio of net debt to net debt plus equity was 19% compared with 20% a year ago. Net debt has been redefined.

Capital expenditure, excluding acquisitions and asset exchanges, was $7.1 billion for the quarter. Total capital expenditure and acquisitions was $9.0 billion. Capital expenditure excluding acquisitions and asset exchanges, and excluding the accounting for our transaction with Husky, is expected to be around $21-22 billion for the year.
Disposal proceeds were $0.3 billion for the quarter.

The quarterly dividend, to be paid in June, is 13.525 cents per share ($0.8115 per ADS) compared with 10.325 cents per share a year ago, an increase of 31%. In sterling terms, the quarterly dividend is 6.830 pence per share, compared with 5.151 pence per share a year ago, an increase of 33%. During the quarter, the company repurchased 91 million of its own shares for cancellation at a cost of $1 billion.
 
see full report on: www.bp.com
 
Forward-Looking Statements Cautionary Statement:
This presentation and the associated slides and discussion contain forward-looking statements, particularly those regarding annual charges, improvements in operating performance and stronger financial delivery, effective tax rate, expected restoration of refinery economic capability, delivery of headcount reduction, production growth and likely negative effects of production sharing agreements, impact of planned upstream turnarounds on volumes and costs, refining margins and expected pressures on marketing businesses. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ from those expressed in such statements, depending on a variety of factors, including the timing of bringing new fields on stream; future levels of industry product supply; demand and pricing; operational problems; general economic conditions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; exchange rate fluctuations; development and use of new technology; the success or otherwise of partnering, changes in public expectations and other changes in business conditions; the actions of competitors; natural disasters and adverse weather conditions; wars and acts of terrorism or sabotage; and other factors discussed elsewhere in this presentation.
Reconciliations to GAAP:
This presentation also contains financial information which is not presented in accordance with generally accepted accounting principles (GAAP). A quantitative reconciliation of this information to the most directly comparable financial measure calculated and presented in accordance with GAAP can be found on our website at www.bp.com
Cautionary Note to US Investors:
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as “resources” and “non-proved reserves”, that the SEC’s guidelines strictly prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our Form 20-F, SEC File No. 1-06262, available from us at 1 St James’s Square, London SW1Y 4PD. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

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Tags: BP, cost, first-quarter, profit, replacement