OREANDA-NEWS. BP's first-quarter replacement cost (RC) profit was USD 3,475 million, compared with USD 16,596 million a year ago. First quarter 2013 included a USD 12.5-billion gain relating to the disposal of our interest in TNK-BP. After adjusting for a net gain for non-operating items of USD 224 million and net favourable fair value accounting effects of USD 26 million (both on a post-tax basis), underlying RC profit for the first quarter 2014 was USD 3,225 million, compared with USD 4,215 million a year ago. 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, 21 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 USD 39 million for the quarter. For further information on the Gulf of Mexico oil spill and its consequences, including information on utilization of the Deepwater Horizon Oil Spill Trust fund, 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 USD 8.2 billion, compared with USD 4.0 billion in the same period of 2013. Excluding amounts related to the Gulf of Mexico oil spill, net cash provided by operating activities for the first quarter was USD 8.8 billion, compared with USD 4.3 billion in the same period of 2013. First quarter 2013 net cash provided by operating activities was impacted by a significant increase in working capital which did not occur in 2014.

Net debt at 31 March 2014 was USD 25.3 billion, compared with USD 25.2 billion at 31 December 2013. The ratio of net debt to net debt plus equity at 31 March 2014 was 16.2%, the same level as at 31 December 2013. Net debt and the ratio of net debt to net debt plus equity are non-GAAP measures. See page 24 for more information.

Total capital expenditure on an accruals basis for the first quarter was USD 6.1 billion, of which organic capital expenditure* was USD 5.4 billion.

In October 2013, BP announced plans to divest a further USD 10 billion of assets before the end of 2015. BP has agreed around USD 3.0 billion of such further divestments to date. Disposal proceeds received in cash were USD 1.0 billion for the quarter.

The effective tax rate (ETR) on RC profit for the first quarter was 31% compared with 14% for the same period in 2013. Adjusting for non-operating items and fair value accounting effects, the underlying ETR in the first quarter was 33% compared with 39% for the same period in 2013. The underlying ETR was lower in the first quarter of 2014 mainly due to foreign exchange effects on deferred tax and an increase in equity-accounted earnings (which are reported net of tax).

Finance costs and net finance expense relating to pensions and other post-retirement benefits were a charge of USD 367 million for the first quarter, compared with USD 404 million for the same period in 2013.

BP repurchased 245 million ordinary shares at a cost of USD 2.0 billion, including fees and stamp duty, during the first quarter of 2014. As at 31 March 2014, BP had bought back 997 million shares for a total amount of USD 7.5 billion, including fees and stamp duty, since the announcement on 22 March 2013 of a share repurchase programme with a total value of up to USD 8 billion expected to be fulfilled over 12-18 months from the date of the announcement.

BP today announced a quarterly dividend of 9.75 cents per ordinary share (USD 0.585 per ADS), which is expected to be paid on 20 June 2014. The corresponding amount in sterling will be announced on 9 June 2014. See page 23 for further information.

For items marked * throughout this document, definitions are provided in the Glossary on page 29.

(a) Profit attributable to BP shareholders.

The commentaries above and on the above download are based on RC profit and should be read in conjunction with the cautionary statement.