BP posted a $1.41 billion loss for the second quarter as low oil and gas prices continued to weigh on the company’s upstream segment.
The$1.41 billion loss compared to a $5.82 billion loss a year ago.
BP posted a $720 million profit on an underlying replacement cost basis for the second quarter, or a profit of $3.85 per ordinary share, compared to a profit of $1.31 billion a year ago.
BP also reported a $2.24 billion replacement cost loss for the quarter, or a loss of $12.03 per ordinary share, compared to a loss of $6.26 billion a year ago.
“Compared with a year earlier, the underlying second quarter result was impacted by lower oil and gas prices and significantly lower refining margins, but this was partly offset by the benefit of lower cash costs throughout the group as well as lower exploration write-offs,” BP CEO Bob Dudley said.
Underlying operating cash flow for the quarter, before pre-tax payments tied to Deepwater Horizon spill, was $5.5 billion.
The company took a net post-tax non-operating charge of $2.8 billion in the quarter, including a pre-tax non-operating charge of $5.2 billion associated with the Deepwater Horizon liabilities and other positive tax credits.
Including fair value accounting effects and inventory gains, the charge resulted in a reported loss for the quarter of $1.4 billion.
Non-operating items for the quarter also included a $68 million restructuring charge.
Net cash provided by operating activities in the second quarter was $3.9 billion, down from $6.3 billion in the year ago quarter.
Excluding post-tax amounts related to the Deepwater Horizon spill, net cash provided by operating activities was $5.3 billion.
Proceeds from disposals for the second quarter were $400 million.
BP’s upstream segment posted a $109 million replacement cost (RC) profit before interest and tax compared to a $228 million RC profit in the prior year quarter.
The downstream segment booked an RC profit of $1.40 billion for the second quarter, down from $1.62 billion in the year ago quarter.
BP reported a $246 million profit from its stake in Russia’s Rosneft, down from $510 million in the same quarter of last year.
RC loss attributable to shareholders came in at $2.24 billion for the second quarter compared to a loss of $6.26 billion in the year ago quarter.
Production for the second quarter ticked down 1 percent year-over-year to 2.09 million barrels of oil equivalent per day.
Production for the first half of the year climbed 2.3 percent year-over-year to about 2.25 million barrels of oil equivalent per day.
BP said it expects third quarter production to be slightly lower than second quarter production due to seasonal turnaround, maintenance activities and the impact of an outage at the Enterprise Pascagoula gas processing plant.
Net debt as of June 30 was $30.9 billion, up from $24.8 billion a year ago.
BP also announced an unchanged dividend for the quarter of 10 cents per ordinary share ($0.6 per ADS), expected to be paid in September.
“We are now well down the path of transforming our business to compete, whatever the future holds. We now see a much stronger outlook for BP and are focused on growth, both for this decade and beyond,” Dudley added.