British oil giant BP rebounded back into net profit in the first quarter, energised by deep cost-cutting and rising crude prices, the group revealed Tuesday. Earnings after tax stood at $1.45 billion (1.33 billion euros) in the first three months of 2017, which contrasted with a net loss of $583 million during the first quarter of 2016.
Benchmark oil contract Brent North Sea crude averaged $54.61 in the first quarter, up 55 percent year-on-year. Energy producers across the world have reaped the benefits of higher oil prices so far this year, because they translate into rising revenues and higher profits. Prices have been boosted in recent months as the Opec oil producers' cartel has adhered to a production cut agreed late last year.
US giants ExxonMobil and Chevron, as well as French titan Total, all posted bumper profits last week. "Our year has started well. BP is focused on thedisciplined delivery of our plans," said BP chief executive Bob Dudley in Tuesday's results statement. "First-quarter earnings and cash flow were robust. We have shown continued operational momentum." Replacement cost profit, which strips out exceptional items and changes in the value of oil inventories, rose to $1.51 billion from $532 million. That easily beat market expectations of $1.21 billion, according to analysts polled by Bloomberg.
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