LONDON (dpa-AFX) - British integrated oil and gas major BP Plc. (BP.L, BP_UN.TO, BP) Tuesday announced a narrower replacement cost loss for the second quarter from the prior year. Revenues were hit by lower oil prices.
The company said the results draws a line under Deepwater Horizon liabilities, despite strong operations and cash flow. The shares were down 2.32 percent on LSE, despite an initial climb in early morning trading.
Second-quarter replacement cost loss was $2.25 billion, narrower than loss of $6.27 billion a year ago. Loss per share was 12.03 cents and loss per ADS was $0.72, compared to loss per share of 34.25 cents and loss per ADS of $2.05 in the previous year. Underlying replacement cost profit was $720 million, down from $1.313 billion in the prior year.
Loss attributable to the shareholders was $1.419 billion, narrower than last year's loss of $5.823 billion.
BP has taken a net post-tax non-operating charge in the quarter of $2.8 billion. This includes a pre-tax non-operating charge of $5.2 billion associated with the Deepwater Horizon liabilities and other positive tax credits.
On an underlying replacement cost basis, BP reported profit for the second quarter of $720 million.
Total revenues and other income were $47.276 billion, substantially down from $63.205 billion in the previous year. Earnings from joint ventures were significantly up, while earnings from associates were almost halved from the comparable last year period. Currency translation had an impact of $35 million for the second quarter, while it was a gain of $698 million in the prior year.
BP announced dividend of 10 cents payable on September 16 to shareholders on record August 5, 2016. Dividend for American Depository share holders will be $0.6 per ADS, expected to be paid in September.
Looking ahead, BP expects Upstream projects to add 800,000 barrels of oil equivalent a day of production by 2020. Of these, projects with 500,000 boe/d of new production capacity are expected to be in place by the end of next year - these projects are on average already 70% complete and ahead of both schedule and budget.
BP is currently trading at 429.10 pence, down 11.25 cents on LSE.
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