BP profits triple during Q1 of 2017

BP profits triple during Q1 of 2017

BP (LSE:BP) almost tripled its profits during the first quarter of the year, with a return in oil prices driving a better than expected return in its latest financial report.

The British multinational oil giant reported profits on an underlying replacement cost basis of US$1.5 billion, up from the $532 million recorded in the same financial quarter in 2016.

The profit figure also trumped the $1.26 billion consensus forecast by leading industry analysts.

Brian Gilvary, BP’s chief financial officer, said: “We’ve got a good quarter under our belts but it’s just one quarter and there’s no complacency.

“We’ve still got a lot of work to do and major projects to bring on stream.”

Production rose by 5% to 3.5 million barrels per day in the first three months of 2017, as the first of seven new projects expected over the course of this year came online in Trinidad.

BP’s global portfolio is also set to be bolstered this year by new projects in Egypt, the North Sea and the Caribbean.

The oil major’s recent reshuffling of its portfolio has also included divestments, including the $1.68 billion sale of its stake in the Shanghai Secco Petroleum Company, along with the $250 million sale of its Forties pipeline system in the North Sea to Ineos.