A dreadful second quarter in which BP was hit by lower realised prices and a reduced contribution from its Russian joint venture, TNK-BP, resulted in a net quarterly loss of $1.39bn (£885m). This meant that half-year returns fell short of analyst expectations, but the consequent 3 per cent fall in BP's share price was relatively modest, indicating that the overhang from the Gulf of Mexico disaster remains the principal drag – and potential catalyst – for valuations.
First-half replacement cost profits (less gains or losses from inventories) fell by 53 per cent on the comparable period in 2011 to $5.17bn. The bulk of this contraction was attributable to a $4.69bn decline between the first and second quarters. BP was also forced to write-down $4.87bn on its assets, including some US refineries, the suspended Liberty oil and gas project in Alaska and a range of shale gas assets. The group also booked $847m in quarterly pre-tax non-operating losses relating to the Gulf of Mexico spill.
Average daily production, excluding TNK-BP, fell by 7 per cent on the first quarter to 2.275m barrels of oil equivalent, while full-year guidance was maintained.
Prior to these figures JPMorgan expected full-year EPS to decline 14 per cent to $1.01 (2011: $1.15).
BP (BP.) | ||||
---|---|---|---|---|
ORD PRICE: | 444p | MARKET VALUE: | £85bn | |
TOUCH: | 444-444.5p | 12-MONTH HIGH: | 512p | Low: 361p |
DIVIDEND YIELD: | 4.4% | PE RATIO: | 8 | |
NET ASSET VALUE: | 590¢* | NET DEBT: | 29% |
Half-year to 30 Jun | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (p) |
---|---|---|---|---|
2011 | 192 | 20.2 | 68.8 | 8.618 |
2012 | 192 | 7.1 | 23.8 | 10.246 |
% change | - | -65 | -65 | +19 |
Ex-div: 08 Aug Payment: 25 Sep £1 = $1.57 *Includes intangible assets of $34.2bn, or 180¢ a share |