BP, one of the world’s largest oil and gas companies, has reported a $5 billion profit for the quarter, thanks to successful oil and gas trading. This is a significant increase from the same period last year, when the company reported a loss of $6.7 billion due to the impact of the COVID-19 pandemic on the global oil market.
The company’s strong performance in the first quarter of 2021 can be attributed to its trading division, which made a profit of $2.6 billion. This was largely due to the volatility in the oil market, which allowed BP to take advantage of price differences between different regions and types of crude oil.
BP’s upstream division, which includes exploration and production activities, also performed well, with a profit of $2.4 billion. This was driven by higher oil and gas prices, as well as increased production from new projects.
However, BP’s downstream division, which includes refining and marketing activities, saw a decline in profits due to lower refining margins and reduced demand for fuel during the pandemic. The division reported a profit of $378 million, down from $1.4 billion in the same period last year.
Despite the challenges faced by the downstream division, BP’s overall performance in the first quarter of 2021 has been impressive. The company’s CEO, Bernard Looney, said in a statement that “we have had a good start to the year. Our strategy is working and we are delivering on our commitments.”
BP has been undergoing a major transformation in recent years, as it seeks to shift its focus towards renewable energy and reduce its carbon emissions. The company has set a target of becoming a net-zero company by 2050, and has pledged to invest $5 billion per year in low-carbon projects by 2030.
While BP’s profits from oil and gas trading are still a significant part of its business, the company’s growing investments in renewable energy and other low-carbon technologies are a clear sign of its commitment to a more sustainable future. As the world continues to transition towards cleaner sources of energy, BP’s success in the first quarter of 2021 is a positive sign for the company’s future prospects.
