Shares in BP (LON:BP) have jumped in London today after the oil major revealed that it had returned to profit in the first three months of the year. The company benefitted from a recovery in oil prices which have bounced back from the 12-year lows seen early last year.
As of 09:17 BST, BP’s share price had added 2.47 percent to 453.42p, outperforming the broader London market, with the benchmark FTSE 100 index currently 0.65 percent better off at 7,250.62 points. The group’s shares have gained more than 21 percent over the past year, but have given up some 11 percent in the year-to-date.
BP announced in a statement this morning that its underlying replacement cost profit for the first three months of the year had climbed to $1.5 billion, as compared with a $583-million loss in the prior-year period. The result surpassed the $1.21 billion average estimate of Bloomberg-polled analysts. The company posted a five-percent rise in oil and gas production and noted that its new major upstream projects remained on track.
“Our year has started well,” BP’s chief executive Bob Dudley commented in the statement. “We have shown continued operational momentum – it was another strong quarter for the Downstream and
the first of our seven new Upstream major projects has started up, with a further three near completion. We expect these to drive a material improvement in operating cash flow from the second half.”
The upbeat results come ahead of the oil major’s annual general meeting (AGM) on May 17, with BP having trimmed Dudley’s pay package for last year by 40 percent. The move came after nearly 60 percent of voters rejected his pay deal at last year’s AGM after the group delivered a record loss amid a slump in crude prices.