BP PLC on Tuesday announced underlying profit reduced to replacement cost for the third quarter of the year which exceeded market expectations.
Oil giant FTSE 100 made underlying profit of $ 86 million at replacement cost for the three months ended September 30, compared to the company’s market consensus of a loss of $ 120 million. The metric is similar to the net profit figure used by US oil companies, but removes one-off items. BP had reported underlying earnings of $ 2.25 billion in RC a year earlier.
BP’s net loss for the period was $ 450 million, following a loss of $ 749 million a year earlier.Weakness in the oil market continued to hurt the UK company in the third quarter, with average prices of $ 43 per barrel severely squeezing margins over the period. However, BP said that, compared to the second quarter, the company’s financial performance benefited from the lack of major write-offs for exploration and the recovery in oil and gas prices and demand. The upstream division achieved underlying third-quarter RC profit of $ 878 million before interest and taxes, compared to a loss of $ 8.5 billion from April to June.
BP’s board of directors declared a dividend of 5.25 cents per share for the period, in line with the reset of shareholder payments announced this summer. It was down from 10.25 cents a year earlier.
The company reported net debt of $ 40.4 billion as of September 30, down $ 500 million from the start of the quarter.
Write to Jaime Llinares Taboada at [email protected]; @JaimeLlinaresT