BP’S firing back up with a profit

HOPE FOR OIL GIANT AFTER LOCKDOWN

BP defied grim predictions of huge losses by getting back into the black and posting a £66million profit in the three months to September 30.

Analysts had feared the oil giant would report losses of around £92m following a £5.9bn deficit from April to June when lockdowns around the world smashed demand for fuel.

But the figures were weak compared to the third-quarter period last year, with replacement cost profit diving by 97% from £1.8bn.

BP chief executive Bernard Looney said: “Having set out our new strategy, our priority is execution and, despite a challenging environment, we are doing that – performing while transforming.”

Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, backed the upbeat assessment and called the latest numbers a “stark improvement” on the second quarter when it wrote down the value of its oil fields and exploration projects.

She said: “An uptick in global demand for oil has helped but there is still a huge task ahead for the company to make the pivot to a green energy future while grappling with the collapse in the oil price. “The focus in the longer term will be on making the most of its remaining oil fields while investing in a low carbon future, and it’s a very tricky manoeuvre.”

Despite the challenges, BP resisted making further cuts to its dividend, which would have been unpalatable for shareholders who often buy the stock for the payout.