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British Oil major BP PLC reporting second quarter earnings Tuesday matching analyst expectations. $BP continued it's share buy back program. $BP follows fellow majors $XOM, $CVX,$COP, $TOT, $E and $RDSA reports.

Bp Rig

BP PLC ADR (NYSE: $BP) Earnings In-Line Before Open Tuesday

$0.85 Matched $0.85 EPS and $76.907 billion in revenue 

Earnings

Second-quarter 2018 adjusted earnings of 85 cents per ADS on a replacement cost basis, excluding non-operating items. The bottom line matched consensus  and improved from the year-ago quarter’s 21 cents. Total revenues were $76,907 million in the quarter, up from $57,366 million in the year-ago quarter. 

BP PLC NYSE: $BP

Market Reaction > Lunch $45.05 USD +0.65 (1.45%)

Q2 Highlights

Upstream

  • Total production rose 2% year over year to 2.465 million barrels of oil equivalent per day (MMBoe/d).
  • Ramp-up in key developments primarily aided the rise.
  • BP sold liquids at $67.24 a barrel in the second quarter as compared with $46.27 in the year-earlier quarter.
  • BPt sold natural gas at $3.65 per thousand cubic feet, compared with $3.19 a year ago.
  • Overall price realization increased to $43.37 per barrels of oil equivalent (Boe) from the year-ago level of $33.59.
  • After adjusting for non-operating items and fair value accounting effects, underlying replacement cost profit before interest and tax for the segment was $3,508 million, considerably higher than $710 million a year ago.
  • Increased realized prices from oil and natural gas and rising volumes primarily drove the upside.

Downstream

  • Downstreaml profits improved to $1,455 million from $1,413 million in the year-ago quarter.
  • The Whiting refinery processed massive crude volumes that primarily attributed to the growth.
  • Refining marker margin of $14.9 per barrel in the second quarter of 2018 was higher than 13.8 in the year-ago quarter.
  • However, total refinery throughput fell to 1,680 thousand barrels a day (MB/d) from 1,688 MB/d in the year-earlier quarter.
  • Refining availability was 93.3%, compared with 94.5% in the year-ago quarter.
  • Downstream earnings fell 30% to $838 million, largely due to lower margins on refined product sales from its international refining operations.
  • Production edged up about 2% to 2.83 million boe per day.

Cap Ex

  • BP reported exploration costs of $164 million, this was down almost 81% from $850 million in the year-earlier quarter.

Buybacks

  • In the second-quarter 2018, BP spent $80 million on the repurchase of 11 million shares.
  • BP raised its quarterly dividend by 2.5% to 10.25 cents per ordinary share.

Rosneft

  • Recorded profits of $766 million, up from $279 million a year ago.

Deepwater Oil Spill Costs

  • Through the first half of 2018, BP made a payment of $2.4 billion, after tax, associated with the oil spill.
  • For 2018, BP projects total payment to be just over $3 billion.

Cash and Debt

  • BP's net debt was $39,277 million at the end of the second quarter, nominally lower than $39,794 million a year ago.
  • Net debt ratio was 27.8%, slightly below 28.8% in the prior-year quarter.

Outlook

  • For the July-to-September quarter of 2018, the company expects oil and natural gas production to be mostly flat sequentially.
  • Due to maintenance and turnaround activity which will hurt third-quarter 2018 refining margins.

 

BP Q1 Earnings Preview

Earnings

$2.586 billion in net profit for Q1, the highest since 2014 and beating analysts' estimates of $2.12 billion.

BP PLC NYSE: $BP

  • Reaction May 1, 9:56 AM EDT 44.91 ▲ 0.31 (0.70%)

Deepwater Liability Update

"We've reached the peak now for quarterly payments in terms of Macondo" and. The company's debt will "come down as the year progresses, quarter on quarter, especially given where prices are today."  CFO Gilvary said in a Bloomberg television interview on Tuesday

BP's cash flow from operations in the first quarter, excluding payments related to the spill, was $5.4 billion. The company paid out $1.6 billion on a pretax basis related to Deepwater Horizon, including a final $1.2 billion payment to the U.S. Department of Justice.

Payments are expected to be just over $3 billion in 2018, weighted to the first half of the year.

BP's gearing ratio of net debt to equity, was 28%, an increase from 27% in the fourth quarter of 2017, BP has worked through nearly all of the 390,000 legal claims stemming from the 2010 explosion, the bill for its remaining claims unexpectedly jumped late last year. BP was forced to take a surprise $1.7 billion charge to net income in the fourth quarter because the cases that did remain were among the largest and most complex.

Share Buyback

Spent $120 million buying 18 million shares in the first quarter

Other Oil Majors Q32017 Earnings Reports 

ExxonMobil $XOM Earnings Shrug Off Harvey With Robust Cashflow

Chevron $CVX Q3 Earnings Miss as U.S. Output Falls

ConocoPhillips $COP Earnings Beat But Lowers Capex

Live From The Pit 

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