British energy giant BP today reported higher than expected profit thanks to a big increase in refining revenues that offset poor earnings from its oil production division.
BP reported first-quarter underlying replacement cost profit of $2.58 billion, compared to expectations of $1.28 billion.
That was down nearly 20% from the same time last year but up 15% from the fourth quarter of 2014.
The company said it is maintaining the dividend at 10 cents per share.
"The dividend is the first priority within our financial framework and the board is committed to maintaining it, as we have today," BP's chief executive Bob Dudley said.
"We can sustain this by successfully resetting our capital and cost base and rebalancing our sources and uses of cash in the prevailing oil price environment. We will continue to review progress on this as we move through the year," he added.
BP's oil production division reported underlying pre-tax replacement cost profit of $0.6 billion, down from $4.4 billion a year ago. The result included a $545m loss for BP's US upstream business.
"Upstream result was significantly affected by lower oil and gas prices as well as weaker gas marketing and trading and $375m costs associated with the cancellation of contracts for two deepwater rigs in the Gulf of Mexico," BP said.
Benchmark Brent prices averaged $55 a barrel in the first quarter of 2015, almost half the level of a year ago. The fall in upstream earnings was despite increased production.
Underlying pre-tax replacement cost profit for BP's refining unit was $2.2 billion for the quarter, compared with $1 billion a year earlier.
The first quarter results included a $215m non-operating charge as part of a $1 billion restructuring programme that will include thousands of job cuts.
