BP's (BP.) interim statement revealed that its Macondo disaster trust fund has almost run dry after compensation provisions shot up by $1.4bn in the June quarter, taking the total payments to date to $19.7bn. BP also increased provisions for the 2010 oil spill by about $200m to $42.4bn. With just $300m left in the fund, and a compensation deadline of April 2014, the oil giant confirmed that claims will be taken straight from future profits once the fund runs out. Still, with comparable net debt reduced by 42 per cent to $18.2bn, the balance sheet is in decent shape.
In the second quarter, a tax-lag issue in Russia and adverse currency movements restricted net profits to $2.13bn (£1.39bn) - a step up from the comparable loss of $1.47bn in 2012, but below analysts’ expectations. BP received $99.08 (from $104.67 in 2012) a barrel for crude/condensates through the half-year, while average gas receipts rose by 18 per cent to $5.45 per million cubic feet. Upstream production for the second quarter fell by 1.5 per cent to 2.24m barrels of oil equivalent, and output will trail away in the third quarter partially due to North Sea maintenance.
Overall, BP reported half-year net profits of $19bn ($4.89bn in 2012) on a replacement cost (RC) basis although, strip out non-operating items/fair value accounting adjustments, and RC profits actually fell by 16 per cent to $6.93bn.
Investec anticipates 2013 EPS of 79.1¢ (from 92.1¢ in 2012).
| BP (BP.) | ||||
|---|---|---|---|---|
| ORD PRICE: | 456p | MARKET VALUE: | £86bn | |
| TOUCH: | 455-456p | 12-MONTH HIGH: | 485p | LOW: 416p |
| DIVIDEND YIELD: | 5.1% | PE RATIO: | 5 | |
| NET ASSET VALUE: | 683¢* | NET DEBT: | 14% | |
| Half-year to 30 Jun | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 194 | 6.77 | 22.4 | 10.246 |
| 2013 | 203 | 23.9 | 99.1 | 11.835 |
| % change | +5 | +252 | +343 | +16 |
Ex-div: 7 Aug Payment: 20 Sep £1 = $1.53 *Includes intangible assets of $37.3bn, or 197¢ a share | ||||
