BP Sells TNK Stake and Smashes Analyst Expectations
BP (NYSE:BP) stock climbed as much as 2 percent on Tuesday morning. The integrated oil and gas company reported first-quarter financial results that beat expectations. Underlying replacement cost profit (profit adjusted for inventory changes and one-off items) came in at $4.2 billion. This is about 11 percent lower than the year-ago period but beat estimates by nearly $1 billion.
Operating cash flow increased 17.6 percent on the year to $4.0 billion. BP completed the sale of its interested in TNK-BP at the end of March, pulling in $27.5 billion in cash and Rosneft stock. The gain on the disposal was $15.5 billion, of which $12.5 billion was recognized and reported as a non-operating item in the first quarter, while $3.0 billion of the gain was deferred and will be released to the income statement over time.
|Mar. 31, 2012||June 30, 2012||Sept. 30, 2012||Dec. 31, 2012||Mar. 31, 2013|
|Underlying RC profit ($) in millions||4,799||3,685||5,179||3,852||4,215|
|Underlying RC profit per ADS($)||1.52||1.16||1.63||1.21||1.32|
Since the 2010 Deepwater Horizon disaster, BP has sold about $65 billion in assets to finance spill costs and reformat the company into leaner, more focused operation. First-quarter production was about 2.3 million barrels per day, 5 percent lower than the year-ago period. This is approximately 50 percent of Exxon Mobil’s (NYSE:XOM) production, and approximately 50 percent of where BP’s production stood in 2008.
Net debt at the end of the quarter was $17.7 billion, which is down from $31.0 billion in the year-ago period. This decrease was primarily driven by the $11.8 billion cash inflow from the sale of the company’s stake in TNK-BP.
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