BP Plc (BP.L,BP_UN.TO,BP) reported Tuesday that its third-quarter replacement cost or RC loss was $644 million, compared to last year’s loss of $351 million.
RC loss per ADS was $0.19, compared to loss of $0.10 last year.
Sequentially, RC loss narrowed significantly from the $17.66 billion loss or $5.24 loss per ADS reported in the preceding second quarter.
In the third quarter, underlying RC profit was $86 million, compared to profit of $2.25 billion last year and loss of $6.68 billion in the second quarter.
Underlying RC profit per ADS was $0.03, compared to $0.66 profit last year and $1.98 loss in the second quarter. Compared to the previous quarter, the result benefited from the absence of significant exploration write-offs and recovering oil and gas prices and demand. This was partly offset by a significantly lower oil trading result.
Loss attributable to BP shareholders was $450 million, narrower than loss of $749 million a year ago. In the second quarter, attributable loss was $16.85 billion.
Total revenues and other income declined to $44.20 billion from $69.29 billion a year ago, but increased sequentially.
Production for the quarter was 2,243mboe/d, 12.7 percent lower than the third quarter of 2019 mainly due to divestments in BPX Energy, Alaska and Gulf of Suez oil concessions in Egypt. Underlying production decreased 3 percent.
Further, BP announced a quarterly dividend of 5.25 cents per ordinary share or $0.315 per ADS, which is expected to be paid on December 18. The corresponding amount in sterling will be announced on December 7.
Looking ahead, the company expects fourth-quarter 2020 reported production to be slightly lower than the third quarter due to maintenance activity. Further, continued pressure on industry refining margins and for marketing volumes would remain impacted by COVID-19 restrictions.
BP said it continues to make progress towards its target of $2.5 billion in annual cash cost savings by end-2021 compared with 2019, with its new organization on schedule to be in place by start of 2021.
Further, BP expects to incur people-related costs associated with the reinvent programme, including redundancy payments, of around $1.4 billion over the next 1-2 years, primarily in 2020.
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