BP reports solid H1 profits despite exploration write-off

BP

Upstream major projects on track, says British oil giant


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British oil giant BP reported on August 1 that solid first half profits, strong operations and a strong cash flow.

“We continue to position BP for the new oil price environment, with a continued tight focus on costs, efficiency and discipline in capital spending,” BP CEO Bob Dudley said in a statement posted on the company’s website.

“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,” Dudley added.

According to BP, underlying replacement cost (RC) profit for the second quarter was $0.7 billion. Second-quarter operating cash flow, excluding Gulf of Mexico oil spill payments, was $6.9 billion. Including these payments, operating cash flow for the quarter was $4.9 billion.

Second-quarter Upstream production was 10% higher than in the same period in 2016; first-half production was 6% higher, BP said.

According to the British oil giant, upstream major projects on track; two new projects sanctioned in quarter; significant gas discoveries in Senegal and Trinidad announced; $753 million exploration write-off, predominantly in Angola. BP abandoned its 50% stake in a block off the Angolan coast because it estimated that it was no longer commercially attractive.

In Downstream, first-half fuels marketing earnings around 20% higher than in the first half of 2016, BP said.

 

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