Thursday 31 July 2014

British Petroleum (BP) report Q2 2014

BP, front page, Q2, 2014, release

BP arrived also this week with their Q2 report for 2014. If you want to read the full report from which I have taken the information please go to the full Q2 2014 report of British Petroleum. The share price was slightly down around -1% upon the release of the report. For my previous BP report Q1 2014 please click on this link. What was then in the report?

Below is the income statement from BP and I must admit that I always get impressed by the size of the numbers that they present. almost 94 billion USD in revenue during Q2 2014 and for the running six months almost 187 billion USD. Big values! The number from the sale of TNK-BP is still in there and are being used when looking back at 2013 which makes things still look less good but in my eyes BP is doing good business and are looking very healthy and when removing the sale of TNK-BP then 2014 is looking as well as 2013 was.

BP, Q2, 2014, income statement

Looking at the profit statement then we see that upstream has done a bit worse compared to 2013 and downstream much worse but back then the TNK-BP was included in the calculations there. What lift things up is Rosneft that now seems to have reached equilibrium and will hopefully bring in around 1 billion USD in cash each quarter.

BP, Q2, 2014, profit statement

Conclusion: BP is number wise doing very well! Litigations are still not finished but the costs are decreasing quarter for quarter. Their share buy-back program is by the look of it finished and I guess that the share price will therefore not keep increasing any further but the dividend payments are solid and arrives each quarter. I will keep my shares. To look closer on BP please see analysis of BP 2014.

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