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BP earnings shrink by 57%, as compared to ExxonMobil’s 68% Overall first quarter earnings dropped substantially, but BP still had profits of $1.58 billion; the LNG segment’s profits were up from 2001’s first period Allen Baker PNA Contributing Writer
First-quarter earnings were sharply lower at BP PLC, 57 percent lower than last year’s figure, in fact. But that still put BP well ahead of many big rivals in the competitive oil industry.
ExxonMobil earnings sank 68 percent, and ChevronTexaco profits dropped 70 percent. Among somewhat smaller companies, Marathon and Phillips both had losses. The figures aren’t directly comparable since BP provides only pro forma numbers.
BP’s pro forma earnings, adjusted for special items, came to $1.58 billion, down from $3.71 billion a year ago and $1.77 billion in the fourth quarter. BP doesn’t supply net earnings that are more comparable with figures from U.S. and Canadian companies.
But oil and gas prices went down across the board, and BP was fairly typical in its exploration and production sector — profits were down 53 percent even though overall production was up slightly.
E&P brought in $2.40 billion, down from $5.14 billion a year ago and a shade above the fourth quarter’s $2.37 billion.
Downstream was tough for the whole industry, with ExxonMobil and ChevronTexaco both showing red ink in the segment. BP’s earnings in that segment dropped substantially — 71 percent. But the company still had downstream profits of $287 million. Refinery margins down 60 percent Refinery throughputs rose 3 percent to 2.99 million barrels a day even though BP sold refineries in Utah and North Dakota to Tesoro. The Veba Oil addition more than made up the difference. Refining margins were down 60 percent worldwide, and U.S. retail margins were down 60 percent compared with the year-ago quarter, BP reported. The chemicals business showed some signs of coming out of the doldrums, with a profit of $108 million, up from $81 million a year ago and $39 million in the fourth quarter.LNG group nets $111 million LNG powered the gas, power and renewables segment to a profit of $111 million, up from $100 million in 2001’s first period.
Liquids production rose 2.7 percent to 1.99 million barrels a day, while gas volumes dropped 1.7 percent to 8.75 billion cubic feet.
The London-based company has set an impressive target of boosting production 5.5 percent by the end of the year, and the overall rise was just 0.75 percent for the quarter, with production from Alaska’s Northstar helping that cause, along with the Tambor project in Norway and Girassol in Angola. OPEC quotas limited flow in Abu Dhabi, Venezuela and Norway. BP says it’s still on track to meet the 5.5 percent goal.
Average oil price declined 24 percent to $18.77 a barrel for the quarter, compared with a year ago. Gas price on average was $2.27 per thousand cubic feet, a 68 percent drop.
BP doesn’t report quarterly revenues.
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