BP battered by hurricanes and low prices
BP said it had delivered strong operating cash flow despite its third-quarter profits taking a battering from a lower oil price and bad weather in the Gulf of Mexico.
Theoilmajor,whichremains a key North Sea player, posted an underlying replacement cost profit – the term BP uses for net income – of $2.3 billion, 40 per cent below last year’s comparable figure.
But the outcome was better than analysts had predicted, as the company’s refineries outperformed. Outgoing chief executive Bob Dudley said: “BP delivered strong operating cash flow and underlying earnings in a quarter that saw lower oil and gas prices and significant hurricane impacts.”
It will likely be the last thirdquarter results presented by the American, who has announced that he will be stepping down next year. He is set to be replaced by Bernard Looney, the Irishman in charge of upstream, the BP arm that explores and produces new oil and gas.
David Barclay, head of office at Brewin Dolphin Aberdeen, said: “This quarter’s performance could be seen as a reminder of just how much of a difference volatile oil prices can have on the majors’ results.
“There are positives to take from the expansion of the downstream business, the progress of BP’S divestment programme and greater cash flow. However, the upstream division and gearing remaining beyond target are areas for concern, while investors will also take a short-term hit from the scrapping of the scrip dividend.”