BP profitable in 2Q. Output rises

BP returned to profit in the second quarter of 2017, earning $144 million in the period, compared to a loss of $1,42 billion a year ago.

Production for the quarter was 2,431 mboe/d, 9.9% higher than the second quarter of 2016.

Looking ahead, BP expects third-quarter reported production to be broadly flat with the second quarter with the continued ramp-up of major projects offset by seasonal turnaround and maintenance activities.

Bob Dudley, Group chief executive said: “We continue to position BP for the new oil price environment, with a continued tight focus on costs, efficiency and discipline in capital spending. We delivered strong operational performance in the first half of 2017 and have considerable strategic momentum coming into the rest of the year and 2018, with rising production from our new Upstream projects and marketing growth in the Downstream.”

“Despite those lower prices, we are generating cash across the business and we’re now balancing our sources and uses of cash at under $50 a barrel, when you set aside our Macondo obligations. We can’t assume that oil prices will go back up, but our earnings are above expectations and we’re on the right track and firing on all cylinders. These results point to a business that is running well – and it certainly feels like it,” Dudley said.

BP’s net debt at the end of the quarter was $39.8 billion, compared with $30.9 billion a year ago.

Offshore Energy Today Staff

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