BP returns to profit after worst quarter

BP

 

BP posted a modest $86m (£66m) profit in the third quarter, beating analyst expectations, thanks to higher oil prices and a recovery in fuel sales.

The oil giant reported a $86m underlying replacement cost profit, its definition of net income, after analysts had predicted the FTSE 100 company would swing $120m into the red reported The Telegraph.

The result follows a record $6.7bn loss in the previous quarter. This time last year, BP made a profit of almost $2.3bn.

It benefited from the absence of significant exploration write-offs taken in previous updates and a recovery in demand and prices for oil and gas.

Chief executive Bernard Looney, who is leading a push to transition BP away from a reliance on oil and other fossil fuels, said: “Having set out our new strategy in detail, our priority is execution and, despite a challenging environment, we are doing just that – performing while transforming.

“Major projects are coming online, our consumer-facing businesses are really delivering and we remain firmly focused on cost and capital discipline. Importantly, net debt continues to fall.

“We are firmly committed to our updated financial frame, including the dividend – the first call on our funds.”

Source: The Telegraph

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