TN PETRÓLEO

BP Plc beat forecasts with a first-quarter replacement cost profit of US$5.26 billion on Tuesday on the back of high oil prices.

The world`s second-largest listed oil firm by market capitalization said in a statement that the replacement cost result, which excludes changes in inventory values, included a $17 million charge for non-operating items.

Excluding such one-offs, BP`s underlying or "clean" net profit was $5.28 billion, compared with an average forecast of $5.21 billion from a Reuters poll of eight analysts and $4.96 billion in the same period of 2005.

BP said it would pay a quarterly dividend of 9.375 cents per share.

As usual, it was BP`s upstream oil and gas production unit which powered the strong results, with higher oil prices more than compensating for lower volumes.

Profits at BP`s refining unit also rose compared to last year, although margins were below fourth quarter levels and the closure of the London-based firm`s Texas City refinery continued to weigh on earnings.

BP said "the full financial potential" of the refinery would not be realized until 2007.

The world`s second largest listed oil firm said an increase in taxation of UK oil and gas production would lead to a one-time deferred taxation charge of around $600 million.