BP Q1 profits surged due to Russian Deal

BP’s Q1 profit is £10.7billion, which includes $12.4billion from Kremlin-controlled Rosneft for its stake in TNK-BP.

09:44 02 May 2013

BP’s profit for the first three months of 2013 is £10.7billion. This is three times higher compared to the profits they reported the same quarter last year. Reported profits include $12.4billion from Rosneft who bought its stake in TNK-BP in a deal that was completed in March.

Excluding the money from the Russian deal, profit is down by 9per cent. The company has been selling assets to pay the cost of disastrous Gulf of Mexico spill which cost the company $42.2billion. This is one of the worst environmental disasters in the US history.

However, BP’s reported profit still beats forecasts. Analysts forecasted that the company’s Q1 earnings will slip by up to 30per cent. The better-than-expected result was due to new production coming from major projects in Angola and the North Sea.

 

Bob Dudley, BP chief executive, said: “These strong first-quarter results demonstrate the progress BP is making in delivering the performance milestones that support our 10-point plan and underpin our commitment to material operating cash flow growth by 2014.”

 

BP share price increase more than 3per cent following the news.