BP reports profit up to $7.124 billion in quarter

27th April 2011, Comments 0 comments

Energy giant BP said on Wednesday that first-quarter net profits leapt 17 percent to $7.124 billion (4.9 billion euros) as oil prices surged, one year after being hit by the US oil disaster.

BP added in a results statement that last year's devastating Gulf of Mexico spill would cost it $41.3 billion. That compared with the previous estimate of $40.9 billion.

And owing to the increased charge, BP's adjusted profits -- which also strip out the impact of changes in the value of inventories -- fell by two percent to $5.481 billion in the first quarter.

Group sales meanwhile swelled by almost 19 percent to $88.3 billion. But total oil and gas production declined by 11 percent to 3.58 million barrels per day in the reporting period.

World oil prices surged in the first three months of this year, boosted by simmering tensions and violent unrest in the crude-producing Middle East and North Africa region.

However, the market remains significantly below record high prices of above $147 per barrel which were reached in July 2008.

In 2010, crisis-hit BP had reported its first annual loss in almost two decades as a result of the Gulf of Mexico oil spill disaster.

BP suffered a shortfall of $4.9 billion last year, which was the first loss since 1992 and compared with a profit of $13.955 billion in 2009.

© 2011 AFP

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