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BP Q1 Underlying Replacement Cost Profit Declines YoY - Quick Facts

BP Plc (BP.L,BP_UN.TO,BP) reported a first quarter loss to shareholders of $4.365 billion, compared to profit of $2.934 billion, prior year. Loss per share in cents was 21.63 compared to profit of 14.47. Loss per ADS was $1.30 compared to profit of $0.87. Replacement cost loss for the first quarter was $0.6 billion, compared to profit of $2.1 billion, last year, including a $1.4 billion net adverse impact of non-operating items and fair value accounting effects. Underlying replacement cost profit was $0.8 billion, compared to $2.4 billion, last year. Underlying RC profit per ordinary share, in cents, was 3.92 compared to 11.69. Underlying RC profit per ADS $0.24 compared to $0.70. On average, eight analysts polled by Thomson Reuters expected the company to report profit per share of $0.26, for the quarter. Analysts' estimates typically exclude special items.

First quarter sales and other operating revenues declined to $59.65 billion from $66.32 billion, previous year. Total revenues and other income declined to $59.54 billion from $67.41 billion.

The company expects 2020 organic capital spending to be around $12 billion, a reduction of around 25% on full-year guidance given in February. These interventions are expected to reduce 2020 underlying production by around 70mboe/d compared with 2019. During the second quarter, BP expects to make the annual payment of around $1.2 billion relating to the Gulf of Mexico spill settlement.

BP plans to reduce cash costs by $2.5 billion by the end of 2021 relative to 2019. The company noted that some of these cost savings may have associated restructuring charges.

"We have developed a clear plan and are confident in increasing resilience in our financial framework through a set of interventions focused on building liquidity, strengthening our balance sheet and reducing expenditure to drive our cash balance point below $35 per barrel in 2021," said Brian Gilvary, CFO.

Net debt at 31 March 2020 was $51.4 billion, compared with $45.1 billion a year ago. Gearing at 31 March 2020 was 36.2%, compared with 30.4%. At the end of the quarter, BP had around $32 billion of liquidity available.

BP plc announced a quarterly dividend of 10.5 cents per ordinary share ($0.63 per ADS), which is expected to be paid on 19 June 2020.

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