Earnings more than double at 'reliable' BP as major projects come alive

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Better “reliability” and the commencing of a number of major projects has enabled oil giant BP to double its earnings in 2018.

The global oil firm recorded replacement cost profits of £9.7 billion in 2018, compared to £4.7bn in the year previous.

A total of six major facilities were commissioned in 2018, including Clair Ridge, west of Shetland, in November.

New upstream programmes also became operational in Egypt, Russia, Azerbaijan, the Gulf of Mexico and Australia.

This means means BP took on 19 new major projects between 2016 and 2018.

Other UK successes for 2018 included discoveries at Capercaillie in the central North Sea and Achmelvich, west of Shetland.

The firm were also commended for the Alligin and Vorlich projects.

BP sold 75% of the Magnus field to EnQuest, while interests in Bruce, Keith and Rhum were given to Serica Energy.

Operational reliability was “very strong” at BP in 2018, with the brand's production averaging 3.7 million barrels of oil per day (boed), which is a 2.4% increase on 2017 figures.

Upstream operations were 3% higher at 2.5m boed.

Total revenue numbers jumped up by 24% to £232bn last year. Meanwhile, pre-tax profits increased to £12.8bn from £5.5bn, which is thought to be due to higher oil prices.

This year’s output is expected to be higher again due to the ramp-up of new projects.

Meanwhile, BP intends to complete more than £7.6bn worth of divestments over the next two years.

BP chief executive Bob Dudley said: “We now have a powerful track record of safe and reliable performance, efficient execution and capital discipline.

“And we’re doing this while growing the business – bringing more high-quality projects online, expanding marketing in the Downstream and doing transformative deals such as BHP.

“Our strategy is clearly working and will serve the company and our shareholders well through the energy transition.”

 

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