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BP has posted a profit of $2.04bn for the second quarter of 2013, compared to a loss of $1.51bn for the same period in 2012.

The company’s second quarter replacement cost profit was $2.4bn, compared with $104m a year ago.

BP said its post-tax result of $2.7bn in the second quarter was influenced by reduced oil prices, a stronger dollar and reduced post-tax income from Russia.

The company’s upstream segment reported pre-tax underlying replacement cost profit of $4.3bn, compared to $4.4bn in the same period in 2012.

BP, since April 2013, has gained interest in 16 new exploration licence blocks – 13 in the Brazilian Equatorial Margin, two in the Barents Sea in Norway and one in the South China Sea.

The company is currently drilling eleven exploration wells and has already completed four this year – in Brazil, the North Sea and India.

BP Group CEO, Bob Dudley, said the results show strong underlying pre-tax performance from the company’s businesses.

"The company’s second quarter replacement cost profit was $2.4bn, compared with $104m a year ago."

"We are seeing growth in production from new high-margin projects and are making good progress in exploration and project delivery," Dudley added.

"Completion of our operational milestones confirms our confidence in delivering our commitment to materially increase operating cash flow in 2014."

During the second quarter, BP paid $978m for the Deepwater Horizon Oil Spill Trust (Trust) and qualified settlement funds (QSFs), including $912m for claims payments and administrative costs of the Deepwater Horizon Court Supervised Settlement Program (DHCSSP).

The company also paid an additional $65m for natural resource damage assessment and early restoration. In addition, the company paid $179m to claimants from the seafood compensation fund.

The company said it had an aggregate cash balances of $8.2bn in the Trust and the QSFs as of 30 June 2013, including $1.4bn remaining in the seafood compensation fund, which is yet to be distributed.

BP previously said it has set aside a total $20bn fund to provide compensation for the victims of Deepwater Horizon oil rig incident that happened in 2010 and claimed 11 lives.


Image: BP Group CEO Bob Dudley. Photo courtesy of INS Pirat.

Energy