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BP’s Q1 Upstream and Downstream Earnings Fell

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BP’s upstream earnings

BP (BP) posted its first-quarter earnings on April 30. The company’s earnings beat the estimates. To learn more, read BP’s Q1 Earnings Results Surpass Analysts’ Estimates.

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BP’s upstream adjusted EBIT fell from $3.2 billion in the first quarter of 2018 to $2.9 billion in the first quarter. The fall was due to lower liquids realization. The fall was partly offset by higher natural gas realizations and higher production. The average hydrocarbon realizations fell from $41 per boe (barrel of oil equivalent) in the first quarter of 2018 to $39 per boe in the first quarter. However, the hydrocarbon production rose 2.0% to 2.66 MMboepd (million barrels of oil equivalent per day) in the first quarter.

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ExxonMobil’s (XOM) upstream earnings fell from $3.5 billion in the first quarter of 2018 to $2.9 billion in the first quarter. Total’s (TOT) exploration and production adjusted operating earnings fell 5% from the first quarter of 2018 to $1.7 billion in the first quarter. Chevron’s (CVX) adjusted upstream segment’s earnings fell from $3.4 billion in the first quarter of 2018 to $3.3 billion in the first quarter.

BP’s other segments

BP’s downstream adjusted EBIT fell 5% YoY to $1.7 billion in the first quarter. The EBIT fell due to the lower adjusted EBIT in the fuels and lubricants segment. The fall was partly offset by the higher EBIT in the petrochemicals segment. Fuels earnings fell due to lower refining margins. BP’s refinery utilization fell during the first quarter.

BP’s Rosneft segment includes equity earnings from Rosneft—a giant oil company in Russia. BP owns a 19.8% stake in Rosneft. The Rosneft segment’s adjusted EBIT rose from $247 million in the first quarter of 2018 to $567 million in the first quarter.

Overall, BP’s adjusted EBIT was $4.8 billion in the first quarter.

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