BP reports 45% drop in profits

BP reported a 45 per cent fall in third-quarter replacement-cost profit to $3.867 billion (€2.7 billion).

BP reported a 45 per cent fall in third-quarter replacement-cost profit to $3.867 billion (€2.7 billion).

Although lower than the same period last year, BP's underlying profits were towards the top end of analysts' forecasts, helped by a lower tax rate.

The drop in profits was due to lower oil and gas production, problems at its refining division and fewer asset sales, which had flattered the year-earlier result.

BP, which recently outlined a restructuring plan, said the slide in production would end in the fourth quarter and that troubled refineries would come back on stream as predicted.

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BP's shares traded up 0.1 per cent at 605-1/2 pence earlier today, matching the rise in the DJ Stoxx European oil and gas sector index.

BP said production of oil and gas fell 4 per cent to 3.65 million barrels of oil equivalent per day (boepd), due to asset sales and natural field decline not being matched with new start-ups after key projects were delayed.

Analysts had forecast production of 3.70 million boepd.