LONDON: British energy giant BP said yesterday that net profits almost tripled in the first quarter of 2013, boosted by the sale of its stake in Russian joint venture TNK-BP, despite falling oil and gas output.
Earnings after taxation surged to $16.86bn in the three months to the end of March, compared with $5.77bn in the same period of 2012, BP said.
“These strong first-quarter results demonstrate the progress BP is making ... and underpin our commitment to material operating cash flow growth by 2014,” said Chief Executive Bob Dudley.
“The early completion of the sale of our interest in TNK-BP has also allowed us to begin a share buy-back programme which we expect to return up to $8bn to our shareholders and reflects the reduction in BP’s asset base following our divestment programme over the past three years.”
The energy major expects that the share buyback programme will take place over the next 12-18 months. BP added that its replacement cost profit — an industry measure which strips out changes in the value of energy inventories as well as one-off gains or losses — surged to $16.60bn in the first quarter, from $4.78bn last time around.
BP, seeking to reposition itself after the devastating Gulf of Mexico oil spill disaster in 2010, had agreed last year to a massive strategic deal with the main Russian oil producer Rosneft.
First-quarter profits were boosted by the sale, which completed last month for a total consideration of $27.5bn in cash and Rosneft shares. As a result of the blockbuster deal, BP now holds a 19.75-percent stake in Rosneft.
BP said it booked a gain of $15.5bn on the sale, of which $12.5bn was recognised in the first quarter. BP said that the cost of the US Deepwater Horizon oil spill disaster remained at $42.2bn.
AFP
