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Interim Results

BP underlying replacement cost profits rise

01 August 2017 07:19

BP's profit for the second quarter and half year was $144 million and $1,593 million respectively, compared with a loss of $1,419 million and a loss of $2,002 million for the corresponding periods in 2016. The second-quarter replacement cost (RC) profit was $553 million, compared with a loss of $2,247 million for the same period in 2016.

After adjusting for a net charge for non-operating items of $215 million and net favourable fair value accounting effects of $84 million (both on a post-tax basis), underlying RC profit for the second quarter was $684 million, compared with $720 million for the same period in 2016.

For the half year, RC profit was $1,965 million, compared with a loss of $2,732 million a year ago.

After adjusting for a net charge for non-operating items of $520 million and net favourable fair value accounting effects of $291 million (both on a post-tax basis), underlying RC profit for the half year was $2,194 million, compared with $1,252 million for the same period in 2016.

BP announced a quarterly dividend of 10.00 cents per ordinary share ($0.600 per ADS).

Group chief executive Bob Dudley said: "We continue to position BP for the new oil price environment, with a continued tight focus on costs, efficiency and discipline in capital spending.

"We delivered strong operational performance in the first half of 2017 and have considerable strategic momentum coming into the rest of the year and 2018, with rising production from our new Upstream projects and marketing growth in the Downstream."

Chief financial officer Brian Gilvary added: "Cash flow was strong in the first half - organic cash flow exceeded organic capital expenditure* and dividends paid.

"While net debt rose primarily due to Gulf of Mexico payments, we expect this will improve over the second half as these payments decline and divestment proceeds come in towards the end of the year."

Story provided by StockMarketWire.com

Related Company: BP.

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