BP reports profit increase

BP profits have announced a rise in profit in their first quarter report for the company's new trading year.

The oil company confirmed that its first quarter replacement cost profit was £5,491 million, an increase of 29% from the same period in 2004.

BP reported that the trading environment in the first quarter was generally stronger than it had been in 2004, with higher oil and gas realizations, higher refining and chemicals margins, but lower marketing margins.

BP Group Chief Executive Lord Browne said: “This strong start in 2005 reflects the results of our significant investment programme over the past few years and improvements in underlying performance.”

Exploration and Production also increased by 53% from 2004, reflecting higher realizations in both liquids and gas and higher volumes, partially offset by the impact of planned revenue investment and costs.

Lord Browne said oil prices had reached a further record average of $47.62 in the first quarter, which was $3.77 per barrel higher than in the previous quarter. He said that prices appeared to have been supported by high growth and limited spare production capacity.

However, he said that US gas prices averaged $6.27/mmbtu in the first quarter, a fall of $0.80/mmbtu from the fourth quarter. Lord Browne said that working gas inventories remained above year-earlier and five-year average levels, but the futures market continues to signal a supply-constrained market.

Lord Browne concluded: “Refining margins improved by 25c/bbl versus the fourth quarter. Margins increased sharply towards the end of March and that strength has been maintained into April. Second quarter margins to date are currently above last year’s second quarter levels, supported by demand growth and concerns about US gasoline supplies in the driving season. Retail marketing margins were extremely weak during the first quarter because of steadily rising product prices.

"Slightly weaker oil prices have contributed to improved marketing margins in the second quarter to date, but the depth and sustainability of the improvement is uncertain.”


Related UK National News Stories
Click here for the latest headlines.

26 July 2005
BP reports record half-year profits
BP has reported record profits of $10.7 billion (£6 billion) for the first half of 2005. This represents a massive hike in profits for the comparable period for 2004 as the oil giant benefits from a rising demand for oil around the world.
26 January 2010
UK Emerges From Recession
The British economy has officially moved out of recession. Growth during the last three months of 2009 was recorded at 0.1%, a much smaller than predicted trajectory. The economy had shrunk for six continuous quarters, the deepest dip in over 50 years.
17 April 2003
Regional imports suffer £1bn slump
Government figures released today have revealed that the value of regional imports has slumped by around £1 billion over the past quarter. According the Customs and Excise report, estimates for the fourth quarter 2002 saw regional imports dip £1 billion, or 2%, on the third quarter's figures to £51.4 billion.
04 April 2014
House Prices Decline By -1.1%
House prices fell by -1.1% in March according to Halifax. This was the third monthly decline in the past 15 months. The monthly movements, however, can be volatile and the three month-on-three month change is a more reliable indicator of the underlying trend. However, house prices in the latest three months, January to March 2014, were 2.
29 April 2008
Profits Soar At BP And Shell
Oil giants Royal Dutch Shell and BP have made massive combined profits of more than £7 billion over the last three months. The companies continue to benefit from higher oil and gas prices. BP reported first quarter profits of £3.32 billion and Shell recorded profits of £3.92 billion.