Tuesday, May 01, 2012


 
   By Alexis Flynn 
   Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--BP PLC (BP) Tuesday posted a 12.8% fall in closely-watched adjusted net profit for the first quarter, as the energy giant's inability to produce as much oil and gas as in the same period last year stopped it from cashing in on bumper crude prices to the same extent as rivals.

The company said its clean replacement cost profit, a keenly watched figure that strips out gains or losses from inventories and other non-operating items, dropped 12.8% for the period to $4.80 billion, compared with $5.50 billion for the first quarter of 2011. The adjusted figure is broadly comparable with net income under U.S. accounting rules.

This was well below expectations of $5.10 billion in a Dow Jones Newswires poll of 10 analysts.

The London-based energy giant said net profit for the three months ended March 31 was $5.92 billion, compared with $7.25 billion for the first quarter of 2011.

While BP's profits were underpinned by high oil and gas prices, weaker production than in the corresponding period last year prevented it from benefiting in the manner of peer Royal Dutch Shell PLC (RDSB.LN), which last week posted a near 16% rise in first-quarter adjusted earnings.

Overall output declined 3% from a year ago, due in large part to the continued shutdown of its 43,000-barrel-a-day Foinaven field in the U.K. North Sea and the continued impact of a wide-ranging asset sale program. Production at Foinaven was halted in January after a small leak was discovered in an underwater pipeline.

Total production was 3.471 million barrels of oil equivalent per day, compared with 3.578 million per day a year ago. Analysts had expected production to fall to 3.457 million barrels of oil equivalent per day.

Total revenue for the quarter was up at $96.70 billion from $88.44 billion in the same period in 2010.

Diluted earnings per share were 30.74 cents, compared with 38.10 cents in the same period of the previous year.

BP shares ended Monday at 445 pence. The stock has remained almost a third lower than it was before the Gulf of Mexico oil spill as investors continue to price in the risk of massive U.S. government fines.

-By Alexis Flynn, Dow Jones Newswires; +44 (0)20 7842 9317; james.herron@dowjones.com

(END) Dow Jones Newswires

01-05-12 0636GMT