ANCHORAGE (KTUU) - BP Exploration (Alaska) reported a gain in its annual financial statements for 2017 on Thursday. According to the company, the gain is attributed in part to the improved price of oil, the lack of production decline at Prudhoe Bay, and the reaped benefits from the recently revised federal tax code.
"On the financial front, I am very proud of the progress that BP Alaska, and indeed the entire Alaska industry, has made in adapting to the lower for longer oil price environment," said BP Alaska Region President Janet Weiss in a statement.
According to the report, BP Exploration Alaska (BPXA) had a profit of $830 million; moreover, the profits include a reduction of the U.S. federal corporate income tax rate of "about $500 million in future federal corporate tax liabilities." On Jan. 1, 2018, the tax rate changed from 35 percent to 21 percent.
Also affecting BPXA's gains is increased production at Prudhoe Bay, with "over 280,000 barrels per day for three years." Plus, the price of oil increased from $43.27 per barrel in FY2016 to $54.49 per barrel in FY2017.
BPXA's financial report only represents a portion of BP Alaska, which is made up of several businesses. It does not take into account costs associated with TAPS, Alaska LNG and the marine shipping business.
"All in, our entire BP Alaska regional businesses did make a profit of $118 million in 2017, which is lower than the 20-F reports for the BPXA business by itself," said Weiss. "We also had positive cash flow for the year at about $619 million, following two straight years of losses."
In March or April of every year, BP is required to submit its Annual Report and the 20-F financial report to the U.S. Securities and Exchange Commission. The 2017 report can be found, here.