On Tuesday, BP plc (ADR) (NYSE:BP) announced its financial results for the first quarter of 2017, with earning nearly tripled compared with the same period last year.
According to the company, in the first quarter, the operating cash flow increased from $1.9 billion the same period last year to $2.1 billion. Underlying replacement cost profit, which is the company's net income, was $1.51 billion, beating analysts’ estimates of $1.26 billion. The increase in profits was motivated by rising oil prices and production. In addition, net debt was up 9% to $38.6 billion in the first quarter, and its net debt to shareholder’ equity increased from 26% to 28%.
“Our year has started well. BP is focused on the disciplined delivery of our plans. First quarter earnings and cash flow were robust. We have shown continued operational momentum – it was another strong quarter for the Downstream and the first of our seven new Upstream major projects has started up, with a further three near completion. We expect these to drive a material improvement in operating cash flow from the second half,” Bob Dudley, BP’s chief executive, said in the statement on Tuesday.
In the first quarter, oil prices were up to $54 a barrel. For the full year 2017, the company expected oil prices to be between $50 and $55 a barrel.