British Petroleum Profit Doubles to $6.1B

BP PLC, Europe's second-largest oil company, said Tuesday that first-quarter profit more than doubled from a year earlier to $6.1 billion due to higher crude prices and lower production costs and taxes.

Despite handily beating analysts' forecasts, BP shares fell slightly Tuesday as the market continued to worry about the impact of the oil spill from the sunken Deepwater Horizon rig which BP operates in the Gulf of Mexico.

BP's net profit compared with $2.6 billion in the first quarter of 2009 and $4.3 billion in the fourth quarter.

Replacement cost profit, a key oil industry measure, rose 62 percent to $5.6 billion from $3.4 billion in the fourth quarter and $2.4 billion in the first quarter a year earlier.

Revenue of $74.4 billion was up 1 percent from $73.6 billion in the fourth quarter and 55 percent higher than revenue of $48.1 billion a year earlier.

The quarterly dividend of $0.14 a share was unchanged from a year ago.

"As strong as this performance was, we expect near-term sentiment toward BP to be dominated by the sinking of Transocean's Deepwater Horizon rig and BP's efforts to contain the subsequent spill. This issue aside, we still see better momentum and value in Royal Dutch Shell," which reports results tomorrow, said Gordon Gray and James Evans, analysts at Collins Stewart.

BP shares were down 0.6 percent at 622.8 pence on the London Stock Exchange. They traded at 655.4 pence on the day before the oil rig disaster.

"Progress has been driven by a near doubling in the oil price, a 3 percent reduction in unit production costs, along with favorable accounting effects and a lower tax bill," said Keith Bowman, analyst at Hargreaves Lansdown Stockbrokers.

"On the downside, the accident in the Gulf of Mexico continues to overshadow, while refining remains challenging and group production levels flat," Bowman added.

Oil prices in the first quarter averaged $76 a barrel compared to $41 a year earlier. On Monday, light sweet crude traded at around $84 a barrel.

Production for the quarter was 4 million barrels a day, broadly unchanged from a year earlier, but BP repeated earlier guidance that it expected full-year production to be down slightly in 2010.

[roach9703]

One oil well failure in the Gulf is not the end of the world. Unfortunately, it continues the poor reputation of BP in managing oil infrastructure. Remember the Aleska pipeline mess? BP has a penchant for neglecting to clean pipelines and maintain infrastructure in general.

[rightbehind]

Don't forget about the broad who reminds us the anvil is ready to drop on the 9.2 million jobs the oil industry produces? For every 1 gallon of oil spilled it's estimated that it destroys 250 thousand to as much as 2 million gallons of water. I like fish myself. We need to be moving to bio-fuels. There is no long lasting damage done if bio-fuels are spilled.

[rightbehind]

It will take more than that to clean the mess. Most of the oil drilled for on the coast is for the world market. Most people think we just import it. The drill it here drill it now nutcases have no clue. They help to protect big oil and lock up reserves they pay little or nothing for. The republican grand oil party needs to go. For what was spent on the Iraq war we could have put solar power on 1 of every 3 single family homes in the US.

[Biker-N-OH1]

They won't be reporting a 6.1B profit after they get the bill for this clean up job.

[laurelann11]

The choice is up to us. American Tax Payer can use less, pay less, and do without. How much tax do you pay on every gallon of gas?
We are still in control of shutting televsion off.

[jtdev1]

and they pay not one penny in taxes on that profit to the US Government...

Meanwhile... Oil soaked beaches, dead animals, fishing grounds destroyed.

This is what happens when corporations run a country.

I pledge alegence to the United Corporation of America, and to the Profits for which it stands...

[rightbehind]

That sums it up. If We The People take the country back these people do have a scorched earth policy. They'll sink all the platforms if they have the chance.