UK-based oil major BP has beaten analyst expectations by delivering an underlying profit of $5.28 billion in the first quarter of the year. However, taking all considerations into account net profit fell by 4% as output disruptions and higher taxes offset the continued benefits of high world oil prices.
While net profit excluding higher taxes increased by 7% revenues also increased by 23% to $67.1 billion. The results come as petrol prices in the UK have reached GBP1 per liter for the first time under normal conditions.
However, due in part to reduced output following hurricane damage to its Texas City refinery last year and higher taxes, net profit including considerations fell 4% to $5.26 billion.
The Texas City facility is currently operating at about half capacity eight months on from the hurricane effects and according to Reuters, the company said an increase in taxation of UK oil and gas production would lead to a one-time deferred tax charge of around $600 million.