|
 First-quarter profit rose 73 percent compared with the previous quarter.
"At last, it appears that BP is beginning to improve its operational performance and this looks set to drive a stronger financial performance in the second half," said Tony Shephard, analyst at Charles Stanley & Co.
BP's closely watched replacement cost profit rose 48 percent to $6.59 billion (4.34 billion euros), compared with $4.44 billion in the first quarter of 2007.
The replacement cost figure is viewed by many analysts as the best measure of an oil company's underlying performance because it excludes changes in the value of crude inventories, measuring the amount it would cost to replace assets at current prices.
BP shares rose 3.8 percent to 600.5 pence ($11.93).
Keith Bowman, analyst at Hargreaves Lansdown Stockbrokers, said BP had reported "an exceptional set of numbers" that were well ahead of forecasts.
"Although this should not come as a complete surprise, given historically high energy prices, management have been battling against a series of operational difficulties and the results may indicate that challenges are being won," Bowman said.
[to top of second column] |
 "Management are attempting to play down early investor enthusiasm, highlighting a number of one-off exceptional items which have aided performance," Bowman added. "However, even excluding one-off successes, investors will take great confidence from what looks to be a marked turnaround in performance."
Shephard said BP's recovery had some way to go. "BP is still not firing on all cylinders but its operational turnaround looks to be on track with a strong second half recovery in prospect," he said.
The benefit from the recommissioning of the Whiting, Indiana and Texas City refineries in the United States would be more apparent in the second half, he said.
___
On the Net:
http://www.bp.com/
[Associated Press]
Copyright 2008 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
 |
