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BP surpassed the forecasts for the third quarter and returned to profit

BP logo appears on a fuel pump in front of a petrol station operated by BP Plc in London, UK

Chris Ratcliffe Bloomberg | Getty images

LONDON – Energy giant BP on Tuesday reported small profits for the third quarter, beating analysts’ expectations as the company took advantage of higher oil prices and a lack of significant write-offs.

Third-quarter replacement cost gains, used as a net profit proxy, reached $ 1

00 million. That’s compared to a loss of $ 6.7 billion in the second quarter and a $ 2.3 billion profit for the third quarter of 2019.

Refinitiv analysts expected BP to report a loss of $ 347 million for the third quarter.

He declared a dividend of 5.25 cents per share for the quarter.

BP said recovering oil and gas prices and demand helped the company return to third-quarter profits. However, this was offset in part by a “significantly lower result from the oil trade”.

Shares of BP rose more than 2% during early morning deals.

The results come when sentiment in the energy market remains weak, with rising cases of global coronavirus hampering prospects for growing oil demand.

A wave of new Covid-19 infections has prompted some countries to impose new restrictions as winter looms.

Brent crude futures traded at $ 40.70 a barrel on Tuesday morning, up about 0.6 percent for the session, while US intermediate futures in West Texas were at $ 38.78, up more than $ 0. , 5%.

Both contracts slipped by more than 3% in the previous session.

“Implementation is a priority”

“Once we have set out our new strategy in detail, our priority is implementation, and despite the challenging environment, we are doing just that – implementing as we transform,” Bernard Looney, BP’s chief executive, said in a statement.

Looney said the company remains “firmly focused” on cost and capital discipline and “firmly committed” to its updated financial framework, including dividends.

Along with its second-quarter earnings in August, the energy company announced a pivot to a new strategy, saying the move would help the company move to clean energy in line with its plan to become a zero-carbon company by 2050 or later. -Soon.

BP said it plans to increase its annual low-carbon investment 10 times to about $ 5 billion a year within 10 years. It also aims to develop about 50 gigawatts of net generating capacity for renewable energy by 2030 – a 20-fold increase over 2019.

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