BP's first-quarter replacement cost (RC) profit was $2,103 million, compared with $3,475 million a year ago. After adjusting for a net charge for non-operating items of $413 million and net unfavourable fair value accounting effects of $61 million (both on a post-tax basis), underlying RC profit for the first quarter was $2,577 million, compared with $3,225 million for the same period in 2014. The underlying result for the group was lower, mainly due to reduced profit in Upstream, which was partly offset by an improved result in Downstream, as well as certain favourable tax impacts. The Upstream result for the first quarter was a profit of $604 million comprising a loss of $545 million in the US and a profit of $1,149 million for non-US. This compares with a profit of $4,401 million for Upstream for the first quarter of 2014. RC profit or loss for the group, underlying RC profit or loss and fair value accounting effects are non-GAAP measures and further information is provided on pages 3 and 27.
All amounts relating to the Gulf of Mexico oil spill have been treated as non-operating items, with a net pre-tax charge of $332 million for the first quarter. For further information on the Gulf of Mexico oil spill and its consequences see page 10 and Note 2 on page 16. See also Legal proceedings on page 31.
Including the impact of the Gulf of Mexico oil spill, net cash provided by operating activities for the first quarter was $1.9 billion, compared with $8.2 billion for the same period in 2014. Excluding amounts related to the Gulf of Mexico oil spill, net cash provided by operating activities for the first quarter was $2.5 billion, compared with $8.8 billion for the same period in 2014.
Net debt* at 31 March 2015 was $25.1 billion, compared with $25.3 billion a year ago. The net debt ratio* at 31 March 2015 was 18.4%, compared with 16.2% a year ago. Net debt and the net debt ratio are non-GAAP measures. See page 24 for more information.
Total capital expenditure on an accruals basis for the first quarter was $4.5 billion, of which organic capital expenditure* was $4.4 billion, compared with $6.1 billion for the same period in 2014, of which organic capital expenditure was $5.4 billion.
In October 2013, BP announced plans to divest a further $10 billion of assets before the end of 2015, having completed its earlier divestment programme of $38 billion. Transactions to date have reached around $7.1 billion. Disposal proceeds were $1.7 billion for the first quarter. The amounts include proceeds from our Toledo refinery partner, Husky Energy, in place of capital commitments relating to the original divestment transaction that have not been subsequently sanctioned.
The effective tax rate (ETR) on RC profit for the first quarter was -42%, compared with 31% for the same period in 2014. Adjusting for non-operating items and fair value accounting effects, the underlying ETR for the first quarter was -21%, compared with 33% for the same period in 2014. The tax credit for the quarter reflects a one-off deferred tax adjustment as a result of the reduction in the rate of the UK North Sea supplementary charge. The opposite effect was reported in 2011 when the supplementary charge was increased. In the near term we do not expect that there will be any cash flow impact from this change. Excluding this one-off adjustment for the North Sea, the underlying ETR for the first quarter would have been 21% compared with 33% a year ago mainly due to changes in the mix of our profits and certain one-off items, partly offset by foreign exchange effects from a stronger US dollar.
Finance costs and net finance expense relating to pensions and other post-retirement benefits were a charge of $358 million for the first quarter, compared with $367 million for the same period in 2014.
BP today announced a quarterly dividend of 10.00 cents per ordinary share ($0.600 per ADS), which is expected to be paid on 19 June 2015. The corresponding amount in sterling will be announced on 8 June 2015. See page 23 for further information.
