BP have felt the pressure of the oil price slump with profits falling by $0.7 billion.
Image: BP p.l.c
Third-quarter profit adjusted for inventories and one-time items was $3 billion, compared with roughly $3.7 billion in the same period a year earlier.
Net income for the period fell 63 percent to about $1.3 billion.
Profits in marketing and refining business doubled compared with a year earlier, to about $1.5 billion, excluding assets disposals.
Increased dividend by 5.3 percent from a year earlier, to 10 cents a share, payable in December.
Spending forecast cut $1 billion to $2 billion for this year.
Profit from BP’s near 20 percent share of Rosneft fell to $87 million from $836 million due to the ruble’s depreciation against the dollar and lower oil prices in Russia.
The slump in oil prices, down 25 percent since mid-June, has hit the oil producers hard. Brian Gilvary, BP’s chief financial officer, said, “This is prompting the whole sector to consider the implications of a sustained period of lower oil prices.” However, he also pointed out that BP “can more than comfortably handle a period of $80 a barrel. We have a lot of flexibility to withstand low oil prices.”
Underlying replacement cost profit, analysts’ preferred measure of performance, fell 19 percent to $3bn in the three months to September, compared with $3.7bn a year ago. Despite this figure, share prices have risen following BP’s Q3 release up by $1.20 from $41.95 to $43.15.
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