BP Reports Profit Of $4.4 Billion In Q2 2009

BP Plc (BP) has reported sales and other operating revenues of $54.8 billion for the second quarter of 2009, compared with the sales and other operating revenues of $108.7 billion in the year-ago quarter. It also reported a profit of $4.4 billion for the second quarter of 2009, compared with the profit of $9.4 billion in the year-ago quarter.

BP’s second quarter replacement cost profit was $3,140 million, compared with $6,746 million a year ago, a decrease of 53%. For the half year, replacement cost profit was $5,527 million compared with $12,977 million a year ago, down 57%.

Non-operating items and fair value accounting effects for the second quarter had a net $202 million favourable impact compared to a net $1,775 million unfavourable impact in the second quarter of 2008. For the half year, the respective amounts were $8 million favourable and $1,779 million unfavourable.

Finance costs and net finance income or expense relating to pensions and other post-retirement benefits were $321 million for the second quarter, compared to $221 million for the same period last year. For the half year,the respective amounts were $689 million and $467 million. The net increase in cost was primarily due to a reduction in the expected return on pension plan assets.

The effective tax rate on replacement cost profit for the second quarter and half year was 35% and 36% respectively, the same as a year ago.

Net cash provided by operating activities for the quarter and half year was $6.8 billion and $12.3 billion compared with $6.7 billion and $17.6 billion respectively a year ago.

Net debt at the end of the quarter was $27.1 billion. The ratio of net debt to net debt plus equity was 22% compared with 20% a year ago.

Total capital expenditure for the second quarter and half year was $4.8 billion and $9.4 billion respectively. Capital expenditure, excluding acquisitions and asset exchanges, is expected to be less than $20 billion for the year. Disposal proceeds were $0.7 billion for the quarter and $1.0 billion for the half year.

The quarterly dividend, to be paid in September 2009, is 14 cents per share ($0.84 per ADS), the same as a year ago. In sterling terms, the quarterly dividend is 8.503 pence per share, compared with 7.039 pence per share a year ago, an increase of 21%.