LONDON (Reuters) – BP Plc (BP.L: Quote, Profile, Research, Stock Buzz) reported a small drop in first-quarter profit, falling short of analysts’ forecasts as the lingering effects of the Gulf oil spill frustrated Chief Executive Bob Dudley’s attempts to turn around the oil major.

Lower production and higher charges due to the spill outweighed the benefits of a 38 percent jump in the price of oil and a tripling of refining margins — factors expected to generate bumper earnings across the oil sector.

BP’s replacement cost net profit was $5.5 billion in the quarter, the group said on Wednesday, down 2 percent on the same period last year.

Elsewhere Italian rival Eni SpA (ENI.MI: Quote, Profile, Research, Stock Buzz) reported a 6 percent rise in replacement cost profits to 2.1 billion euros, although in dollar terms the rise was greater, while Houston-based ConocoPhillips (COP.N: Quote, Profile, Research, Stock Buzz) reported a 43 percent rise in net income to $3 billion.

London-based BP was forced to sell oil fields to pay for the spill and this contributed to an 11 percent drop in production compared with the first three months of 2010.

“We continue to see a challenged outlook for the company absent of volume growth,” said Oswald Clint, oil analyst at brokerage Bernstein.

BP took an additional $400 million charge for costs related to the United States’ worst-ever oil spill, bringing the total predicted bill to $41.3 billion, although fines and punitive damages related to gross negligence — which BP denies — could lead to a much higher figure.

LONDON (Reuters) – BP Plc (BP.L: Quote, Profile, Research, Stock Buzz) reported a 2 percent drop in first-quarter profit, falling short of analysts’ forecasts as the lingering effects of the oil spill frustrated Chief Executive Bob Dudley’s attempts to turn around the oil major.

Lower production and higher charges due to the oil spill outweighed the benefits of a 38 percent jump in the price of oil and a tripling of refining margins — factors expected to generate bumper earnings across the oil sector.

BP said on Wednesday its replacement cost net profit was $5.5 billion in the quarter, down 2 percent on the same period last year and compared with predicted rises of 22 percent at Royal Dutch Shell Plc (RDSa.L: Quote, Profile, Research, Stock Buzz) and 59 percent at Exxon Mobil (XOM.N: Quote, Profile, Research, Stock Buzz).

BP took an additional $400 million charge for costs related to the United States’ worst-ever oil spill, bringing the total predicted bill to $41.3 billion, although fines and punitive damages could lead to a much higher figure.

However, the rise in the oil spill charge was the smallest BP announced since the leak was halted, and Jason Kenney, oil analyst at ING, said the stabilizing of BP’s provisioning was a reassuring sign.

BP’s shares traded up 0.5 percent against a 0.3 percent rise in the STOXX Europe 600 Oil and Gas index at 0715 GMT.

Fears about the potential costs mean BP trades at a significant discount to the combined value of its assets, and many analysts have pointed to this as an opportunity.

LONDON, April 27 (Reuters) – BP Plc (BP.L: Quote, Profile, Research, Stock Buzz) reported a 2 percent drop in first-quarter profits, falling short of analysts’ forecasts, as the lingering effects of the oil spill frustrated Chief Executive Bob Dudley’s attempts to turn around the oil giant.

Lower production and higher charges due to the oil spill outweighed the benefits of a 38 percent jump in the price of oil and a tripling of refining margins — factors expected to generate bumper earnings across the oil sector.

BP said its replacement cost net profit was $5.5 billion in the quarter, the company said in a statement on Wednesday.

Excluding one-offs, such as asset sales, BP’s underlying results were $5.37 billion, short of an average forecast of $5.70 billion from a Reuters poll of nine analysts.

BP said production fell 11 percent compared to the same period last year after it sold fields to pay for America’s worst ever oil spill.

The London-based company said it was pursuing a range of options to try and solve its ongoing dispute with its Russian partners in TNK-BP (TNBP.MM: Quote, Profile, Research, Stock Buzz) over a planned tie-up with Rosneft (ROSN.MM: Quote, Profile, Research, Stock Buzz). (Editing by Louise Heavens)

LONDON, April 27 (Reuters) – BP Plc (BP.L: Quote, Profile, Research, Stock Buzz) is expected to post the weakest rise in first-quarter profits among big oil companies on Wednesday, after it was forced to sell assets to pay for the Gulf of Mexico oil spill.

A Reuters poll of nine analysts gave an average forecast of $5.70 billion for the company’s replacement cost (RC) net income, excluding one-off items, a 1 percent rise on the same period last year.

This compares with a predicted 22 percent rise in profits calculated on the same basis at Royal Dutch Shell Plc (RDSa.L: Quote, Profile, Research, Stock Buzz) and a 59 percent rise in net income Exxon Mobil Corp (XOM.N: Quote, Profile, Research, Stock Buzz)

RC net income excludes unrealised gains or losses related to changes in the value of oil inventories and so is comparable to net income under U.S. accounting rules.

The meagre rise in profits comes despite a 38 percent rise in Brent crude in the quarter compared with the same period last year, due to strong global demand and political upheaval in the Middle East, and a tripling in global refining margins.

BP’s production is predicted to have fallen around 12 percent after it sold oil fields to raise money to pay for the spill, which it said in February was likely to cost $40.9 billion to clean up and meet compensation payments and fines.

Investors are hoping the quarter will mark the end of a constant ratcheting up in the estimated cost of the spill.

LONDON, April 21 (Reuters) – The big western oil companies, including Exxon Mobil (XOM.N: Quote, Profile, Research, Stock Buzz) and Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz), are expected to report strong growth in first-quarter profits next week, thanks to higher crude prices and refining margins.

A 38 percent rise in Brent crude in the quarter compared with the same period last year, due to strong global demand and political upheaval in the Middle East, will more than outweigh the impact of falling production at many companies, analysts said.

Exxon, the world’s largest non-government controlled oil company by market capitalisation, is expected to report a 59 percent rise in net income to $9.99 billion, also boosted by its acquisition of XTO last year, according to I/B/E/S estimates.

Industry number two Shell is expected to post a 22 percent rise in current cost of supply (CCS) net income, excluding one-off items, to $5.89 billion, while U.S. rival Chevron is forecast to report a 29 percent rise in net income to $5.92 billion.

“The year-on-year figures will look fantastic,” said Iain Armstrong, oil analyst at brokerage Brewin Dolphin, even though the kinds of contracts oil companies have with resource holders means they pay increasing taxes as oil prices rise, so they don’t get the full benefit of the rise.

London-based BP (BP.L: Quote, Profile, Research, Stock Buzz), however, is expected to produce anaemic results as it is still suffering from the effects of last year’s Gulf of Mexico oil spill.

An around 10 percent drop in the oil major’s oil and gas output, due to field sales to help pay for the disaster, is expected to limit the predicted rise in replacement cost (RC) net income, excluding one-off items, to only 2 percent, at $5.79 billion, according to a Reuters poll of nine analysts.

LONDON (Reuters) – BP Plc has filed a lawsuit against Halliburton, the company that cemented the blown-out well which caused the Gulf of Mexico oil spill, a day after claiming $40 billion from rig owner Transocean.

BP said Halliburton concealed critical information which could have prevented the disaster.

BP did not give a figure for how much money it was seeking from Halliburton but asked for damages of up to the total cost of the spill, which BP has put at $42 billion, plus interest, legal costs and punitive damages.

“Halliburton’s improper conduct, errors and omissions, including fraud and concealment, caused and/or contributed to the Deepwater Horizon incident,” BP said in a court filing.

“Halliburton knew and understood it was misrepresenting material information,” BP added.

The suit was filed on Wednesday, one year to the day after the Deepwater Horizon rig exploded, killing 11 men. On Wednesday, BP also filed a lawsuit against rig operator Transocean.

Since the outset of the disaster, BP has sought to blame its contractors, namely Transocean. The Presidential investigation into the report did criticize these companies but levied most of its criticism against BP.

LONDON, April 18 (Reuters) – Explorer Tullow Oil (TLW.L: Quote, Profile, Research) has sued its former partner in Uganda, Heritage Oil (HOIL.L: Quote, Profile, Research), to recover $313 million which Tullow paid to cover tax on fields it bought from Heritage.

Uganda said Heritage was liable for capital gains taxes on the sale, which the Jersey-based company, led by former mercenary boss Tony Buckingham, denies.

Tullow TLW.IE paid the government the $313 million to secure approval of the change in field ownership, and is now seeking to get the money back from Heritage through the High Court in London.

“Tullow has a duty to its shareholders to seek reimbursement and shift liability back to Heritage,” a spokesman said.

Heritage Oil shares were down 3 percent lower at 0758 GMT.

“This tax issue has been a significant burden on both companies since the original transaction was announced .. this situation looks likely to be an ongoing burden for some time,” Dougie Youngson, oil analyst at Arbuthnot, said.

Heritage said it was seeking the release of over $283 million it placed in escrow pending the outcome of arbitration with Kampala over the tax claim, saying since Tullow had paid the government, no cash was due.

MOSCOW/LONDON, April 15 (Reuters) – BP’s (BP.L: Quote, Profile, Research, Stock Buzz) partners in its Russian venture TNK-BP (TNBP.MM: Quote, Profile, Research, Stock Buzz) rejected the UK oil major’s attempts to settle a dispute caused by its $18 billion tie-up with Rosneft (ROSN.MM: Quote, Profile, Research, Stock Buzz), casting further doubt on the deal.

“Now is the time for sensible proposals from BP to resolve the problems that have been created,” Stan Polovets, chief executive officer of AAR, the consortium that represents the four billionaires who own half of TNK-BP said in a statement.

BP believes the Russians are angling to be bought out of TNK-BP (TNBP.MM: Quote, Profile, Research, Stock Buzz) at a high price — possibly over $35 billion.

BP Chief Executive Bob Dudley said on Thursday BP had offered to do this — sources close to the matter said the oil giant offered $27 billion in conjunction with Rosneft — but he added BP would not overpay.

Polovets said AAR was not planning to sell out and simply wanted BP to conduct the planned $16 billion share swap and $1.2 -$2 billion Arctic Sea exploration deal with Rosneft, through TNK-BP instead, in line with the TNK-BP shareholder agreement.

AAR convinced an arbitration panel to block both elements of the Rosneft deal pending a settlement between the two sides.

Analysts and investors are growing increasingly pessimistic the deal, which was supposed to signal BP’s recovery after the Gulf of Mexico oil spill, will be sealed.

LONDON, April 14 (Reuters) – BP’s (BP.L: Quote, Profile, Research, Stock Buzz) annual shareholder meeting was disrupted by campaigners protesting against the oil giant’s role in the Gulf of Mexico spill, while investors registered their disapproval with big votes against directors.

A group of five campaigners from the Gulf, one of whom had covered themselves in a black oil-like substance, were refused entry to the meeting on Thursday by security guards and police, as a brass band — part of another protest involving BP workers – played in the background.

“They will not let me in,” said Diane Wilson, the late middle-aged woman who was photographed smeared in oil at a congressional hearing where BP’s former chief executive Tony Hayward testified last June.

“I came to talk about what is going on in the Gulf,” she said.

Police said a 62-year-old woman was arrested for “breach of the peace”.

However, some other protesters who had bought shares did gain access to the hall in the docklands, in east London, where the Annual General Meeting was being held, and, along with shareholders, quizzed management on its safety record. The company said it was working to change BP’s culture.

Nonetheless, 25 percent of investors who voted ahead of the AGM — representing 60 percent of shares — voted against the re-election of the head of BP’s safety committee, Bill Castell. [ID:nWLA8152]

LONDON, April 14 (Reuters) – BP (BP.L: Quote, Profile, Research, Stock Buzz) and Russia’s Rosneft (ROSN.MM: Quote, Profile, Research, Stock Buzz) appear to have few options left to salvage a $16 billion share swap deal after trying unsuccessfully to buy out BP’s partners in its Russian venture TNK-BP (TNBP.MM: Quote, Profile, Research, Stock Buzz).

“We have offered them participation in the Arctic. We have offered cash, we have offered participation to TNK-BP in international ventures and we have even jointly offered, with Rosneft, a fair offer for their company,” BP Chief Executive Bob Dudley told shareholders at the company’s annual general meeting on Thursday.

“We are not going to offer large amounts or significant shareholdings in BP,” he added.

The share swap and Arctic exploration deal with Rosneft, which was supposed to mark the beginning of a recovery at BP after its Gulf of Mexico oil spill disaster, have been blocked in the courts by BP’s oligarch partners in TNK-BP.

The AGM was marred by campaigners protesting against the oil giant’s role in last year’s Gulf spill. [ID:nLDE73D1OK]

Earlier on Thursday, BP extended by a month the deadline to complete a $16 billion share swap with Rosneft hours before its expiry, giving the oil major more time to salvage a deal beset by problems from the start.

Sources close to TNK-BP’s Russian shareholders said that BP had offered $27 billion for their 50 percent stake, which they declined as insufficient, although that figure could not be independently confirmed and was regarded as high by another source close to Rosneft.