Oil major BP reported a pretax loss of $865 million in the first quarter of 2016 as low oil prices continue to plague the company.
First-quarter replacement cost loss came in at $485 million, compared with a profit of $2.1 billion a year ago. The replacement cost loss came in well above expectations of $140 million in a poll of analysts provided by the company.
Replacement cost profit is a common accounting measure to report profits in the oil industry which takes into account the fluctuations in the price of oil. Oil prices have seen something of a rebound since BP's last earnings when a barrel was trading around $33 with Brent crude now fetching around $44 a barrel but there is no sign of major producers curtailing output in a bid to support prices further.
In a statement accompanying the results, BP Chief Executive Bob Dudley said that despite the challenging environment, the company was "driving towards our near-term goal of rebalancing BP's cash flows. Operational performance is strong and our work to reset costs has considerable momentum and is delivering results. Furthermore, development of our next wave of material upstream projects is well on track."
Shares of BP rose 2.3 percent in early trade on Tuesday.