BP Bounces Back Continues As Profits Jump 71 Percent

BP profits fly up 71 per cent as company releases best results in three years

BP profits fly up 71 per cent as company releases best results in three years

The move came after the London-based company reported its best quarterly profit since mid-2014, boosted by higher oil prices and rising production.

But the group continued to count the cost of its 2010 Deepwater Horizon tragedy in the Gulf of Mexico, with another 1.6 billion U.S. dollars (£1.2 billion) forked out in the first quarter.

Still, what investors are watching most closely is cash flow, as this is what pays the bills in oil and gas, not net profits that some observers have aptly noted can be adjusted to suit the reporting company's needs.

But the group continued to count the cost of its 2010 Deepwater Horizon tragedy in the Gulf of Mexico, with another $1.6bn (£1.2bn) forked out in the first quarter - including $1.2bn (£873m) for the final payment of its 2012 settlement with the Department of Justice.

Bob Dudley, group chief executive at BP, praised "another strong set of results". Dudley has cut costs and sold assets and BP has benefited from a partial recovery in the price of oil, which plunged from $110 a barrel in 2014 to less than $30 in early 2016 but has since rallied to more than $74 a barrel.

Though BP has worked through almost all of the 390,000 legal claims stemming from the 2010 explosion, the bill for its remaining claims unexpectedly jumped late past year.

The company said it paid out $1.6 billion in the first quarter related to the accident.

Since the start of the year, BP has started production at the Atoll Phase One project in Egypt, the first of six expected start-ups this year.

Continued Downstream earnings growth with strong refining availability in the US.

BP posted a profit of almost $2.5 billion for the first quarter of the year, rising from a profit of just over $1.4 billion over the same period last year.

First-quarter production rose 6 percent to 3.7 million barrels per day.

The surge in revenue led BP last October to become the first European oil major to resume share buybacks in order to offset the dilutive effect of so-called scrip dividend, where shareholders can opt to receive dividends via cash or shares.

"It's not only about the oil price, it is also about the performance of the kit", Gilvary said. Payments are expected to be just over $3 billion in 2018, weighted to the first half of the year.

Net debt at the end of March stood at $40 billion, up from$37.8 billion at the end of 2017.

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