Energy giant (NYSE: BP) reported a 41% fall in third-quarter net profits on Tuesday, citing lower upstream earnings, weaker oil prices and maintenance and weather impacts.
BP posted third-quarter underlying replacement cost profit, used as a proxy for net profit, of $2.3 billion, versus $2 billion. That compared with a profit of $3.8 billion over the same period a year earlier and $2.8 billion in the second quarter of 2019.
The results show that the U.K.-based oil and gas company still managed to beat analyst expectations, despite a sharp drop in third-quarter net profits.
Underlying replacement cost profit, used as a proxy for net profit, for the third quarter of 2019 was $2.3 billion, compared to $3.8 billion a year earlier.
The third-quarter results, despite beating analyst expectations of $2 billion, represent a fall of 41% when compared to the same period a year earlier.
A dividend of 10.25 cents per share was announced for the quarter.
According to CFO Brian Gilvary, "Overall, it has actually given us a strong set of underlying earnings but, more importantly, strong operating cash — which has allowed us to stabilize debt this quarter."
The report comes shortly after CEO Bob Dudley, who has worked with BP for 40 years and held the position of CEO for almost a decade, announced he would be soon be stepping down from his role.
Dudley will be replaced by the current upstream chief executive, Bernard Looney, following the delivery of the firm’s 2019 full-year results on February 4, 2020.
Shares dipped $1.16, or 3%, to $38.08
