Published: Wed, February 07, 2018
Markets | By Rosalie Gross

BP profit rises with production

BP profit rises with production

The oil giant made $6.2bn ($4.4bn), up from $2.6bn made during the previous 12 months.

BP opened seven new oil and gas fields during 2017 and its oil production rose 12% to 247 million barrels of oil per day.

BP is "operating and firing on all cylinders", CEO Bob Dudley says after the company reports better than expected Q4 earnings and revenues. "And we did all this while maintaining safe and reliable operations", Dudley added. The results come after the FTSE 100 group, whose performance has been pressured by costs related to the Gulf of Mexico oil spill, became the first European oil and gas major to resume share buybacks a year ago. With Rosneft included BP's production was 3.6 million barrels of oil equivalent a day, 10 percent higher than 2016. The group benefitted from a rise in oil prices, with the price of a barrel of Brent crude having surged by 40 percent since July. "We enter the second year of our five-year plan with real momentum, increasingly confident that we can continue to deliver growth".

BP (LON:BP) saw its profits soar in 2017, with the group having benefitted from an upswing in oil prices, the blue-chip company has disclosed.

Deepwater Horizon-related payments in the fourth quarter were USD300.0 million, bringing the year's total to USD5.2 billion, down from 2016's USD6.9 billion of payouts.

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In 2017, BP managed to cover the costs and pay full dividends at oil prices of 50 United States dollars per barrel.

Despite the strong start to oil prices, which reached a three-year high in January, Gilvary said he expected prices to come down to $50-$55 a barrel by the end of this year.

Adjusted net income of $2.11 billion beat analysts' expectations of $1.95 billion.

BP took a one-off charge of $900 million in the fourth quarter of 2017 to adjust to new USA tax rules, though it expects a long-term boost from the corporate-friendly rates.

BP was the first among its European peers to resume share buybacks in the fourth quarter of 2017 after years of dilutive austerity measures in the face of the industry slump.

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