Second Quarter Report Card - Report on BP

NEW YORK, September 22, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on BP p.l.c. (NYSE: BP). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/BP.pdf

Highlights from our BP Report include:

• Second Quarter Highlights - On July 28, 2015, BP announced its financial results for the second quarter of 2015. For the second quarter, the Company reported total revenues of $61.8 billion as compared to $95.8 billion in the year-ago quarter. BP recorded a net loss attributable to its shareholders of $5.8 billion during the quarter or $31.83 per diluted share versus a net income of $3.4 billion or $18.15 per diluted share in the prior year period. Underlying replacement cost profit was $1.3 billion for the quarter compared to $3.6 billion reported in the second quarter of 2014, reflecting the impact of continued low oil and gas prices, a reduced contribution from Rosneft, and one-off charges arising from circumstances in Libya, partially offset by continuing strong earnings from BP's downstream businesses and lower cash costs throughout the Group.

• Segmental Results - The Company's Upstream segment reported an underlying pre-tax replacement cost profit of $0.5 billion for the quarter, compared with $4.7 billion in 2Q 2014, primarily due to lower oil and gas prices and c. $600 million of exploration write-offs and other costs related to BP's activities in Libya, primarily due to circumstances in the country. The Downstream segment reported underlying pre-tax replacement cost profit of $1.9 billion, compared with $0.7 billion in 2Q 2014, driven by good refining performance and capture of improved margins, a higher contribution from supply and trading and stronger earnings from both the lubricants and petrochemicals businesses.

• Outlook - For the Upstream segment, the Company expects Q3 2015 reported production to be broadly flat with Q2, primarily reflecting the continuation of seasonal maintenance activity consistent with the second-quarter activity levels, while for the Downstream segment, reduced refining margins and lower levels of turnaround activity are anticipated in Q3.

• Management Speak - Bob Dudley, BP's Group Chief Executive, said, "The external environment remains challenging, but BP moved quickly in response and we continue to do so. Our work to increase efficiency and reduce costs is embedding sustainable benefits throughout the Group and we continue with capital discipline and divestments." He added, "In the past few weeks oil prices have fallen back in response to continued oversupply and market weakness and the recent agreements regarding Iran. I am confident that positioning BP for a period of weaker prices is the right course to take, and will serve the company well for the future."

To find out how this influences our rating on BP p.l.c. read the full report in its entirety here: http://www.aciassociation.com/BP.pdf

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