By Giulia Petroni

 

BP PLC reported first-quarter results on Tuesday. Here's what we watched:

 

UNDERLYING REPLACEMENT COST PROFIT: The London-based energy company's underlying replacement cost profit--a figure that is similar to the net-profit figure U.S. oil companies use, but strips out one-off items--fell to $800 million in the quarter from $2.4 billion in the year-earlier period. A company-compiled consensus of 22 brokers had forecast the figure at $710 million.

 

UPSTREAM: Excluding the Rosneft segment, production was 2.58 million barrels of oil equivalent a day, down 2.9% on year. The company said it expects production to be lower in the second quarter of the year partly due to uncertainties related to the Organization of Petroleum Exporting Countries' restrictions and the coronavirus hit to oil demand.

 

WHAT WE WATCHED:

- DOWNSTREAM OUTLOOK: BP said it expects lower refining margins and reduced utilization in the second quarter mainly due to product demand declines.

-NET DEBT: The company's net debt as of March 31 was $51.4 billion from $45.1 billion a year earlier. Gearing--the ratio of net debt to the total of net debt and equity--climbed to 36.2% from 30.4%. The company said it expects gearing to remain above the 20% to 30% target range in 2021.

-DIVIDEND: The company announced a quarterly dividend of 10.50 cents, up 2.4% from 10.25 cents in the first quarter of 2019.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

April 28, 2020 09:23 ET (13:23 GMT)

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