BP profit drops 23.5% to $3.23B

|About: BP p.l.c. (BP)|By:, SA News Editor

BP's (BP) Q1 underlying replacement-cost profit, which is equivalent to net profit and strips out inventory gains or losses, dropped to $3.23B from $4.22B a year earlier.

Revenue declined to $91.71B from $94.11B.

Production fell 8.5% to 2.13M barrels of oil a day and BP warned that output would fall in Q2 from Q1, mainly due to major maintenance.

Actual net profit dropped to $3.53B from $16.86B in Q1 2013, when BP was boosted by a $12.5B gain from the sale of its holding in TNK-BP.

The upstream division's underlying pretax replacement cost profit fell to $4.4B from $5.7B, dragged down by asset sales and a charge of $521M. At the downstream operations, profit tumbled to $1B from $1.6B amid a weaker refining environment.

Despite the fall in earnings, BP raised its Q1 dividend to 9.75 cents a share from 9 cents last year. (PR)