BP's 1Q Earnings Came 60% Above Expectations -- Earnings Review
27 April 2021 - 7:43PM
Dow Jones News
By Jaime Llinares Taboada
BP PLC reported results for the first quarter of 2021 on
Tuesday. Here's what you we watched:
UNDERLYING RC PROFIT: The British oil major made an underlying
RC profit of $2.63 billion in the first quarter, well above the
$1.64 billion market consensus--compiled by the company from 23
brokers. It was the highest for any quarter since April-June 2019,
and the beat against expectations was mainly driven by an
exceptional gas marketing and trading performance.
NET PROFIT: Net profit rose to $4.67 billion, also beating the
market consensus of $2.06 billion--taken from FactSet and based on
nine analysts' forecasts.
WHAT WE WATCHED:
-PRODUCTION: BP said its production declined 12% to 3.27 million
barrels a day, and forecast full-year upstream output will be lower
than in 2020 as a result of asset sales. Underlying
production--which adjusts for acquisition, divestments and other
one-offs--should be slightly higher with the ramp-up of major
projects, the company said.
-ROSNEFT: Rosneft's contribution to BP's underlying RC profit
grew to $363 million in the first quarter from $311 million in
October-December and a $17 million loss in the first quarter of
2020. The Russian company, which is 19.75% owned by BP, benefited
from stronger oil prices and favorable foreign-exchange
effects.
-DEBT: BP confirmed its net debt fell below $35 billion in the
first quarter, to $33.31 billion as of March 31. As a result, the
group is starting a $500 million share buyback program in the
current quarter, and flagged further buyback plans for the third
quarter, which will be based on reported and expected 2021 surplus
cash flows.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
April 27, 2021 05:28 ET (09:28 GMT)
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