BP (LON:BP) announced Tuesday an increase in underlying profits by 139 percent to $6.2 billion in 2017, marking the biggest year since the Deepwater Horizon accident.
Operating cash flow was $24.1 billion compared to $17.6 billion in 2016, increasing by a 24 percent, excluding the Gulf of Mexico oil spill payments.
The results reflect the benefits of higher oil prices on BP’s business, oil is trading at $70 per barrel in the recent weeks —the highest level in three years.
BP has also benefited from the recent launch of seven new projects, excluding BP’s share of Rosneft production, which boosted oil and gas production delivering a 12 percent growth, reaching the highest level since 2010. With Rosneft included BP’s production was 3.6 million barrels of oil equivalent a day, 10 percent higher than 2016.
Bob Dudley, who took over as CEO six months after the Gulf of Mexico spillage, said: “2017 was one of the strongest years in BP’s recent history. We delivered operationally and financially, with very strong earnings in the Downstream, Upstream production up 12%, and our finances re-balanced. And we did all this while maintaining safe and reliable operations.”
Nevertheless, the company is still paying the debt of the Deepwater Horizon, they saw a decrease from $6.9 billion to $5.2 billion in 2017. In addition, they had to pay a $0.9 billion charge for US tax reform changes.
In light of the accident, BP says it keeps a steady commitment in improving safety, citing 80% fewer serious incidents and a 40% lower injury rate than five years ago.
“Good safety is good business; when people are safe, the assets run reliably and that, in turn, leads to reliable financial results. It’s a virtuous circle and something that we cannot relax on, ever,” said Dudley.
Moreover, they are investing in being sustainable in a lower-carbon world and adapting to the future to embrace the energy transition. Around $500 million is set to invest on renewables, new technologies, venturing and research.
By 2021 the oil giant anticipates the addition of 900,000 barrels per day, a 35 percent increase on their average 2015 portfolio.
“Importantly, the balance sheet has got stronger through 2017, and our Gulf of Mexico spill payments are manageable within our financial frame. I think we’re in a very strong place for a rapidly changing world,” said Brian Givalry, chief financial officer.
Despite doubling profits, BP’s share price fell down 0.45 percent, trading at 480p, as of 12:30 pm (GMT). Dividend per share remains at 10 cents.