Despite cutting costs BP is still hurting from the oil crash and may be forced to issue more cuts.
The company experienced a second consecutive quarterly loss after three rounds of spending cuts that witnessed thousands of job cuts which will be completed by the end of 2017.
BP posted a net loss of $583 million in the first quarter of 2016. The company reported a profit of $2.8 billion one year prior.
In the previous quarter the company reported replacement cost profit of $196 million and $2.6 billion in the first quarter of 2015.
Numbers were better than investors expected and BP shares were trading up 4.5% early on Tuesday.
Oil prices have been bouncing back from their 13-year low in the first quarter to reach just under $40 per barrel.
BP has hinted that more cost cutting is on the horizon. The company lowered the amount it expects to invest to $17 billion in 2016. The company has previously said it would invest $19 billion this year.
BP needs Brent crude to trade between $50 and $55 to generate enough cash to cover investment and pay dividends.
Shareholders are not happy with the company’s performance and recently rejected its plans to give CEO Bob Dudley a 20% pay increase.