BP divestments boost profits

Suzie Neuwirth

BRITISH oil giant BP today announced increased profits from the previous quarter, thanks to strong operational performance and divestments.

The company said underlying replacement cost profit for the quarter was $4.2bn (£2.7bn), compared to $3.9bn in the fourth quarter of 2012.

Bob Dudley, BP group chief executive, said: “These strong first quarter results demonstrate the progress BP is making in delivering the performance milestones that support our 10-point plan and underpin our commitment to material operating cash flow growth by 2014.”

However, production in the second quarter is expected to be lower due to planned focus on higher-margin assets in the Gulf of Mexico and the North Sea, as well as the ongoing impact of divestments.

The first phase of a civil trial in the US regarding the 2010 Deepwater Horizon accident ended on 17 April, finding BP not guilty of gross negligence. However, cumulative charges for the Gulf of Mexico oil spill remain at $42.2bn.