BP’s profit down in Q1

BP said on Tuesday its underlying replacement cost profit reached $1.38 billion.

This compares to $2.72 billion in the first quarter of 2024 and $1.17 billion in the prior quarter.

Compared with the prior quarter, the underlying result reflects lower impact from turnaround activity, stronger realized refining margins, lower other businesses and corporate underlying charge, partly offset by a weak gas marketing and trading result, according to BP.

BP said that its profit attributable to shareholders was $617 million, compared with a loss of $1.96 billion in the prior quarter and a profit of $2.26 billion in the first quarter of 2024.

The company’s gas and low-carbon unit reported underlying replacement cost profit of $1.36 billion, compared to $1.32 billion in the previous quarter and $1.04 billion in the first quarter of 2024.

After adjusting RC profit before interest and tax for a net favourable impact of adjusting items of $0.4 billion, the underlying RC profit before interest and tax for the first quarter was $1 billion, compared with $2 billion in the fourth quarter 2024.

BP said the first quarter underlying result before interest and tax is largely driven by a weak gas marketing and trading result, lower production, including the impact of divestments, and higher costs, mainly non-cash costs and start up costs related to major projects.

Earlier this month, BP and its partners shipped the first LNG cargo produced at the Greater Tortue Ahmeyim FLNG project, located offshore Mauritania and Senegal.

The first phase of the project features Golar LNG’s FLNG Gimi and the Tortue FPSO.

BP expects capital expenditure of around $14.5 billion in 2025 and has a capital frame of around $13-15 billion for 2026 and 2027.