Oil giant BP said yesterday earnings for the first quarter of 2018 rocketed by more than £1billion on the back of rising oil prices and production.
Pre-tax profits soared to £2.8bn, from £1.5bn in the same period in 2017.
The company also pointed to underlying replacement cost profits– it’s preferred measure of performance – of £1.8bn this time, up from £1bn in Q1 last year.
BP announces two new oil and gas discoveries in the North Sea
BP attributed its success in part to its upstream business, which has notched up its strongest quarterly performance since 2014.
Highlights for the firm this year include final investment decisions on four new projects, including the Alligin and Vorlich fields in the North Sea.
BP’s multi-billion pound North Sea Clair Ridge project is expected to start up later this year.
The field, which lies 40 miles west of Shetland and is expected to produce 120,000 barrels of oil per day, is one of several projects due to come online to keep up momentum.
Total production in the first three months of 2018 was 6% higher than a year ago, at 3.7mllion barrels of oil equivalent per day.
BP also said £1.1bn of pre-tax payments for the 2010 Gulf of Mexico oil spill were made during the latest quarter, part of a total of £2.1bn bill for the catastrophe this year.
Chief executive Bob Dudley said: “We have delivered another strong set of results.
“Our safe and reliable operations and strong financial delivery have continued into 2018. With rising output from our new major projects and excellent reliability, Upstream production was 9% higher than a year earlier.
“Moving through 2018 we’re determined to keep delivering our operational targets and maintaining capital discipline, while growing cash flow and returns.”