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.

Illustration; BP’s Na Kika platform in the Gulf of Mexico. Source: BP
Illustration; BP’s Na Kika platform in the Gulf of Mexico. Source: BP

 

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

Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.

Also, if you’re interested in showcasing your company, product, or technology on Offshore Energy Today, please contact us via our advertising form, where you can also see our media kit.

Share this article

Follow Offshore Energy Today

Events>

<< Jan 2020 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply