British energy giant BP plc (BP – Free Report) reported strong first-quarter 2017 results, primarily owing to higher liquid and gas prices realizations. Ramp up of projects during the quarter also supported the outperformance.

The company reported first-quarter adjusted earnings of 46 cents per American Depositary Share (ADS) on a replacement cost basis, excluding non-operating items. The bottom line surpassed the Zacks Consensus Estimate of 38 cents and also improved from the year-ago earnings of 17 cents.

BP’s total revenue was $56,386 million in the quarter. Revenues not only increased from the year-ago level of $39,166 million but also topped the Zacks Consensus Estimate of $53,466 million.      

Operational Performance

Upstream

For the first quarter, total production inched up 3% year over year to 2.388 million barrels of oil equivalent per day (MMBoe/d). Key project ramp ups primarily drove the upside.

The company sold liquids at $49.87 per barrel in the first quarter as against $29.61 in the year-earlier quarter. It sold natural gas at $3.50 per thousand cubic feet compared with $2.84 a year ago. Overall price realization increased to $37.19 per Boe from the year-ago level of $23.81 per Boe.   

After adjusting for non-operating items and fair value accounting effects, underlying replacement cost profit before interest and tax for the segment was $1,370 million. This compares favorably with a loss of $747 million incurred in the year-ago quarter. The improvement was driven by increased liquid and gas price realizations as well as higher production.

Downstream

Segmental profits fell to $1,742 million from $1,813 million in the year-ago quarter. The deterioration is attributable to decreased refinery throughput. 

Refining Marker margin increased to $11.7 per barrel from $10.5 per barrel in the first quarter of 2016. Total refinery throughput decreased to 1,676 thousand barrels per day (MB/d) from 1,744 MB/d in the year-earlier period. Refining availability was 95.2% compared with 95% in the year-ago period.