BP posts quarterly loss on divestment charge and weaker Upstream earnings

BP’s third-quarter results took a hit due to lower oil prices, maintenance works, hurricane impacts, and a divestment charge.

Underlying replacement cost profit for the third quarter of 2019 was $2.3 billion, compared to $3.8 billion a year earlier. The result was impacted by significantly lower Upstream earnings, resulting from lower prices, maintenance and weather impacts, BP said. Brent crude averaged $62 in the third quarter of 2019, down from $75 in the third quarter of 2018.

The company on Tuesday reported a third-quarter loss of $749 million, down from a profit of $3.3 billion a year ago, citing a divestment-related, non-cash, non-operating after-tax charge of $2.6 billion.

Reported oil and gas production for the quarter averaged 3.7 million barrels of oil equivalent a day, an increase compared to 3.6 million barrels of oil equivalent a day a year earlier.

Underlying Upstream production, excluding Rosneft in which BP has a stake, was down 2.5% from a year earlier, reflecting maintenance across a number of regions and Hurricane Barry shutting BP’s US Gulf of Mexico offshore platforms for two weeks.

Bob Dudley, BP chief executive who is soon to retire, said: “BP delivered strong operating cash flow and underlying earnings in a quarter that saw lower oil and gas prices and significant hurricane impacts. Our focus remains firmly on maintaining financial discipline and delivering safe and reliable operations throughout BP. We’re also continuing to advance our strategy, making strong progress with our divestment plans and building exciting new opportunities in fast-growing downstream markets in Asia.”

Looking ahead, BP said it expected the fourth-quarter 2019 reported production to be higher than the third quarter due to the completion of seasonal maintenance and turnaround activities.

Offshore Energy Today Staff

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