UK-based energy giant and LNG player BP reported a lower profit for the first three months of the year due to lower prices at the start of the quarter. 

The company’s underlying replacement cost profit, the company’s version of net profit, reached $2.4 billion, down from the $2.6 billion reported in the corresponding period last year. The drop was offset by strong supply and trading results the company said in its report.

Speaking of the company’s performance, BP’s CEO Bob Dudley said the company “produced resilient earnings and cash flow through a volatile period that began with weak market conditions and included significant turnarounds.”

Reported oil and gas production for the quarter averaged 3.8 million barrels a day of oil equivalent.

Upstream production, excluding Rosneft, for the quarter was 2,656mboe/d, 2 percent higher than a year earlier due to the acquisition of the BHP assets and growth of major projects.

Looking to the second quarter of 2019, we expect higher industry refining margins, a similar level of North American heavy crude oil discounts and a significantly higher level of turnaround activity.