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BP reports ‘solid’ first half, albeit dented by write-downs and oil spill pay-outs

Published: 07:21 01 Aug 2017 BST

BP petrol station
Upstream production was up 10%

BP Plc (LON:BP) has reported on the first six months of its year, describing its performance as ‘solid’.

The oil supermajor reported a first half profit of around US$1.6bn, compared to a US$2bn loss in the same period of 2016, thanks in part to improved production volumes (output was up 10% in the upstream business).

“We delivered strong operational performance in the first half of 2017 and have considerable strategic momentum coming into the rest of the year and 2018, with rising production from our new upstream projects and marketing growth in the downstream," said Bob Dudley, BP chief executive.

It wasn’t all good news, however, as the Gulf of Mexico continues to impact with a US$2bn dent in cash flow from pay-outs. Cash flow amounted to US$4.9bn (excluding oil spill pay outs it would’ve amounted to US$6.9bn).

At the same time, it confirmed a write-off of just over US$750mln against exploration assets in Angola.

BP kept its dividend set at 10 cents per share.

Brian Gilvary, BP chief financial officer, meanwhile, said: “Cash flow was strong in the first half - organic cash flow exceeded organic capital expenditure and dividends paid.

“While net debt rose primarily due to Gulf of Mexico payments, we expect this will improve over the second half as these payments decline and divestment proceeds come in towards the end of the year."

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