BP’s second quarter profit stable as production grows

UK oil major BP posted a profit of $2.8 billion for the second quarter 2019, which is similar to the company’s performance in the same period last year, while its production increased during the period. 

BP’s Thunder Horse platform in the Gulf of Mexico. Source: BP
BP’s Thunder Horse platform in the Gulf of Mexico. Source: BP

BP said on Tuesday that its underlying replacement cost profit for the second quarter of 2019 was $2.8 billion, similar to a year earlier. The quarter’s result largely reflected continued good operating performance, offset by oil prices lower than in the second quarter of 2018, the company said.

Underlying RC profit is after adjusting RC profit for a net charge for non-operating items of $861 million, mainly relating to impairment charges, and net adverse fair value accounting effects of $175 million (both on a post-tax basis).

The company’s non-operating items in the second quarter of $0.9 billion, post-tax, were related mainly to impairment charges.

BP reported oil and gas production for the quarter averaged 3.8 million barrels a day of oil equivalent, 4% higher than a year earlier.

With the start-up of the Total-operated Culzean project (BP 32%) in the North Sea this quarter, four Upstream major projects have begun production in the first half of the year.

Final investment decisions were made for the Thunder Horse South Expansion Phase 2 project in the U.S. Gulf of Mexico and the MJ project on Block KG D6 offshore India. BP and partners also agreed additional investment expected to increase and extend production from deepwater Block 15 offshore Angola.

BP CEO, Bob Dudley, said: “At the midpoint of our five-year plan, BP is right on target. Reliable performance and disciplined growth across our businesses are delivering strong earnings, cash flow and returns to shareholders.”

Organic capital expenditure for the second quarter and half year was $3.7 billion and $7.3 billion, respectively. BP reported $3.5 billion and $7 billion for the same periods in 2018.

Offshore Energy Today Staff

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