BP Share News (BP.)

BP has posted an underlying replacement cost profit decline of 20% on an annualised basis for the three months to end-March, though the figure beat forecasts and was 15% higher on the previous quarter.In a trading statement on Tuesday, the oil giant said profit for the last quarter came in at $2.6bn compared with $3.2bn for the same period in 2014, and $2.2bn for the fourth quarter of 2014.This was also comfortably ahead of the $1bn which analysts had predicted.In line with the wider oil and gas industry, BP bemoaned lower prices relative to last year, noting that Brent crude had averaged $54 per barrel over the last quarter compared with $108 over the first quarter of 2014; the lowest quarterly average price since the first quarter of 2009. The company also said the Henry Hub gas marker price averaged $2.99 mBTU, down 40% year-on-year.BP's exploration and production division reported underlying pre-tax replacement cost profit of $0.6bn for the first quarter of 2015 compared with $4.4bn for 2014. The result included a $545m loss for BP's US upstream business.Underlying pre-tax replacement cost profit for BP's downstream unit came in at $2.2bn for the last quarter, compared with $1bn over the same quarter in 2014. "The result reflects the stronger overall refining environment, increased refining optimisation and production, and improved marketing performance," the company noted.There was also a stronger contribution from supply and trading than a year earlier, BP added.Wider operating climate meant cash-flow for the quarter was $1.9bn compared with $8.2bn a year ago. The quarter's operating cash-flow included a working capital build of $2.5bn. At the end of the quarter BP's net debt was $25.1bn, equivalent to a gearing level of 18.4%.The oil major said it remains on course for further divestments totalling $10bn by the end of 2015. BP has already sold $7.1bn worth of assets this year including its interest in the CATS business, in the British sector of the North Sea.The company also announced a stable quarterly dividend of 10 cents per ordinary share, expected to be paid in June.Commenting on the figures, BP chief executive Bob Dudley said,"We are resetting and rebalancing BP to meet the challenges of a possible period of sustained lower prices. Our results today reflect both this weaker environment and the actions we are taking in response."We are continuing to progress our planned divestment programme, we are resetting our level of capital spending, and we are addressing costs through focusing on simplification and efficiency throughout BP."The company also said its cumulative pre-tax charge for the Gulf of Mexico oil spill stood at $43.8bn. An additional charge of $332m was taken in the quarter due mainly to additional business economic loss claims. At the end of the quarter the aggregate remaining cash balance held in trust and qualified settlement funds was $4.3bn.