Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

BP plc (ADR) (BP), Exxon Mobil Corporation (XOM): A Look into British Petroleum’s Future

BP plc (ADR) (NYSE:BP) is now selling most of its assets in order to cover its liabilities from the Mexican oil spill. Fuel trading helped the company increase its downstream profits while the sale of its TNK-BP unit boosted its cash holdings and the bottom line. In order to increase exploration, the company is planning to drill new wells this year. This report takes an in-depth look at the company’s fundamentals and its future prospects.

BP plc (ADR) (NYSE:BP)

Company description

BP plc (ADR) (NYSE:BP) is a multinational oil and gas company with its headquarters based in London, England. It is Europe’s second largest oil company and it operates in all the segments of the oil and gas industry including exploration and production (upstream), refining and marketing (midstream) and transportation and sales (downstream).


In the first quarter of 2013, BP plc (ADR) (NYSE:BP) reported a net income of $4.2 billion, in comparison to $4.7 billion for the same quarter in 2012. When a gain of $12.5 billion related to the sale of half of its TNK-BP unit in Russia was included, the company made a $16.9 billion profit in the first quarter of 2013. The upstream segment reported a profit before interest and tax (PBIT) of $5.7 billion, down from $6.3 billion year-over-year, while the downstream reported a PBIT of $1.64 billion as compared to $0.9 billion a year ago. The company announced a dividend of $0.09 per share for the first quarter of 2013 that was expected to be paid in June.

Looking into the future

BP plc (ADR) (NYSE:BP) warns that its production for the second quarter will likely be lower than that of the first quarter of 2013 due to the sale of its assets. It also expects that cost will be higher in the second quarter as compared to the first quarter due to seasonal turnout activity. A major cash flow will come after the completion of an upgrade to its US refinery, and this is expected to enhance it’s downstream business. In January, the company announced new oil production from the Valhall field in the southern part of the Norwegian North Sea. It expects that the production from Valhall will continue to grow in the second half of 2013.

Looking at its exploration segment, BP plc (ADR) (NYSE:BP) plans to drill 15 to 25 wells by the end of 2013. Due to the sale of half of its stake in TNK-BP Russian, the company’s total production was 5% lower than it was in the first quarter of 2012.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.