Commodity

High U.S. commodity prices helped lift BP Plc to a record quarterly profit. Tuesday, The company announced its first quarter adjusted replacement cost net profit before goodwill of $4.126 billion, up 52% from a year ago. However, BP, ranked third in the world, did not exceed its earnings forecast of $3.56-$4.23 billion — a feat accomplished by leaders Exxon Mobil and Royal Dutch/Shell Group.

TECO Energy reported late last week that higher commodity pricesand colder weather are the primary reasons it expects to exceedconsensus earnings forecasts for the first quarter. TECO forecaststhat it will beat First Call’s consensus of $0.46 per share byexceeding $0.50 per share, more than 15% higher than the sameperiod last year.

Higher commodity prices, cost savings and mergers contributed toBP Amoco Plc’s $14.2 billion windfall year-end profits last year,which broke British profit records and were second only toU.S.-based rival Exxon Mobil Corp.’s $17 billion profit for 2000.BP’s profit in 1999 was $6.2 million.

Enron Energy Services inked another commodity managementagreement yesterday with Rich Products Corp. for 11 years. Underthe $130 million-plus agreement, the Enron Corp. subsidiary willmanage electricity and natural gas services.

Proctor & Gamble has posted requests for commodity quotes(RFQs) for about 28.7 Bcf over the next year starting July 1 on anew e-commerce website, Energygateway.com, which lays claim tobeing the biggest and best transaction site for industrial energycustomers, utilities and producers. But you better get your bids insoon; the deadline is June 15.

With commodity prices soaring, first quarter producer earningsare coming in at record levels. Vastar Resources reported a massive307% increase first-quarter 2000 net income. Income was tallied at$77.4 million ($0.78 per diluted share), the company’s thirdconsecutive quarterly record, compared to $19 million ($0.19 perdiluted share) in 1Q99. Vastar’s gas production was down nearly 10%to 1,054 MMcf/d, but realized gas prices were up 57 cents to $2.19on average. Crude and condensate production came in at 46.0thousand barrels per day (Mb/d) down from 46.7 Mb/d in the sameperiod last year, but realized oil prices rocketed to $24.73 from$11.16. And gas liquids production increased to 20.8 Mb/d from 9.2Mbd in 1Q99, while realized liquids prices soared to $19.11 from$8.10.

Results from yesterday’s Central Gulf of Mexico Lease Sale 175were buoyed by strong commodity prices. This year’s sale activitydwarfed that of last year’s Central Sale 172 by about 60%,according to the Minerals Management Service’s Gulf of Mexicooffice. High bids received at the sale totaled nearly $300.57million compared to $171.62 million in high bids last year.

Houston-based Coral Energy launched coralconnect.com, ane-business Web site featuring e-commerce transactions, customizedcommodity price information, proprietary energy market analysis andother customer services.

Houston-based Coral Energy launched coralconnect.com, ane-business Web site featuring e-commerce transactions, customizedcommodity price information, proprietary energy market analysis andother customer services.