BP giant BP reported a 41% fall in net profit for the third quarter on Tuesday, citing lower upstream earnings, weaker oil prices and maintenance and weather impact.
BP posted the third underlying underlying compensation expense result, used for net profit proxy, of $ 2.3 billion, versus $ 2 billion, according to data from Refinitive. This compares with a surplus of $ 3.8 billion in the same period last year and $ 2.8 billion in the second quarter of 2019.
The results show that the UK oil and gas company still managed to beat analysts' expectations, despite a sharp decline in net profit for the third quarter.
BP's shares dipped 0.5% shortly after the opening clock.
Here are the key points :
- Underlying replacement cost surplus, used as a proxy for net profits, for the third quarter of 201
- Third-quarter results, despite analysts' expectations of $ 2 billion, represent a 41% decline over the same period a year earlier.
- A dividend of 10.25 cents per share was announced for the quarter.
"Overall, it has actually provided us with a strong set of underlying revenues, but, more importantly, strong operating cash – which has allowed us to stabilize debt this quarter," BP CF O Brian Gilvary told CNBC's "Squawk Box Europe " on Tuesday.
Gilvary said that although oil prices were "quite fine," raw futures appeared to stabilize somewhere around $ 60 a barrel.
"I think it sets us We've got the company back into the $ 50 barrel balance about two and a half years ago. That's why we're starting to generate more excess cash (and) that excess cash will help us pay down the debt, "he added.
International benchmark Brent crude traded at $ 61.32 on Tuesday morning, down around 0.4%, while the US West Texas Intermediate (WTI) was at $ 55.53, more than 0.5% lower.
Brent commodity prices have fallen almost 20% since a peak in April, while WTI prices have fallen more than 15% over the same period.
Dudley two steps down
The report comes shortly after CEO Bob Dudley, who has worked with BP for 40 years and held the position of CEO for nearly a decade, announced that he would soon resign. .
Dudley will be replaced by current upstream manager, Bernard Looney, following the delivery of the company's full-year result in 2019, February 4, 2020.
A BP company logo at a gas station in London, United Kingdom
Chris Ratcliffe | Bloomberg | Getty Images
In September, Dudley said BP would look to some of the most carbon-intensive projects, and reduce investments in others, to try to improve the company's environmental footprint.
The energy giant has been targeted by climate activist groups on several occasions in recent months, with protesters becoming increasingly angry about the lack of progress toward a lower carbon future.
BP's shares are down more than 4% from the same period in 2018, with weaker energy prices and weak global demand seen as likely to burden the oil industry as major energy companies report third-quarter revenues.
Royal Dutch Shell is expected to report its latest quarterly figures on Thursday, with US rivals Chevron and Exxon Mobil both reporting earnings on Friday.