BP lost $583 million in the first quarter 2016, but kept dividend

BP said lower costs — after an announced 12,000 layoffs worldwide — helped offset the weak refining margins.

"Despite the challenging environment, we are driving towards our near-term goal of rebalancing BP’s cash flows," Chief Executive Office Bob Dudley said. "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."

BP will keep its dividend at 60 cents per share after analysts speculated it could be cut. It should be paid in June.

The company, which operates the BP Whiting Refinery in Whiting, Hammond and East Chicago, had $3 billion in cash flow, excluding $1.1 billion it had to pay out for the Gulf of Mexico oil spill. 

BP cut its cash costs by $4.6 billion over the last four quarters, and expects costs in 2017 to be $7 billion lower than they were in 2014.

"As we steadily take out more costs, the point at which we expect to be able to rebalance 2017 organic sources and uses of cash continues to move lower; we currently anticipate being able to achieve this at oil prices in the range of $50 to $55 a barrel," Chief Financial Officer Brian Gilvary said. "This progress underpins our commitment to sustaining BP’s dividend as the first priority within our financial frame. Should prices remain low, we have the flexibility to adjust further within the financial framework."

The company is optimistic about rising crude oil prices, which have averaged $40 a barrel so far this quarter.

"Market fundamentals continue to suggest that the combination of robust demand and weak supply growth will move global oil markets closer into balance by the end of the year," Dudley said.