BP logos are seen at a BP petrol and diesel filling station southeast of London on June 15, 2020.
BEN STANSALL | AFP | Getty Pictures
LONDON — British power main BP on Tuesday reported stronger-than-anticipated earnings for the primary quarter, following a interval of stronger commodity costs and a brighter demand outlook.
It comes as oil and fuel majors search to show to traders that they’ve gained a extra steady footing amid the continued coronavirus disaster.
BP’s first-quarter underlying substitute price revenue, used as a proxy for internet revenue, got here in at $2.6 billion. That in contrast with a revenue of $115 million within the fourth quarter and $791 million for the primary quarter of 2020.
Analysts at Refinitiv had anticipated BP to report first-quarter revenue of $1.4 billion.
Shares of BP are up greater than 16% year-to-date.
The oil and fuel trade was despatched right into a tailspin final 12 months because the Covid-19 pandemic coincided with a historic demand shock, plunging commodity costs, evaporating income, unprecedented write-downs and tens of 1000’s of job cuts.
BP reported its first full-year internet loss in a decade in 2020 as the worldwide well being disaster took a heavy toll on its enterprise operations, with CEO Bernard Looney describing the 12-month interval because the “hardest” of his profession.
The power firm had beforehand warned of a troublesome begin to 2021, with widespread journey restrictions nonetheless in place, however Looney urged the rollout of Covid vaccines ought to assist to enhance investor sentiment.
Oil costs have climbed round 25% for the reason that begin of the 12 months, supported by the rollout of Covid vaccines and an enhancing financial outlook.
Extra just lately, hovering Covid infections in India and an anticipated provide improve from producer group OPEC+ have added downward strain to grease costs.
Worldwide benchmark Brent crude futures traded at $66.24 a barrel on Tuesday morning, up round 0.9% for the session, whereas U.S. West Texas Intermediate futures stood at $62.47, greater than 0.9% larger.
Earlier this month, the Worldwide Vitality Company upgraded its oil demand forecast for 2021, saying market fundamentals appeared “decidedly stronger” in comparison with April final 12 months.
The Paris-based power company tempered its optimism for the 12 months forward, nonetheless, warning that “lingering considerations” persist over the energy of the demand restoration.