BP beats earnings view amid early recovery


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


Please enter your comment!
Please enter your name here