BP Stock Up On Strong Q3 Results; Sees Sequentially Higher Q4 Production

(RTTNews) - Shares of BP Plc (BP.L, BP_UN.TO, BP) were gaining around 3 percent in London trading after the British energy giant reported Tuesday significantly higher earnings in its third quarter, above market estimates, with higher revenues. Further, the company said it sees sequentially higher production in the fourth quarter, with BHP acquisition.

For the third quarter, replacement cost or RC profit was $3.09 billion, up from $1.38 billion in the year-ago quarter. RC profit per ADS for the quarter was $0.93, compared to $0.42 last year.

Underlying RC profit was $3.84 billion, compared to $1.87 billion a year ago. Underlying RC profit per ADS was $1.15, compared to $0.57 a year ago.

On average, five analysts polled by Thomson Reuters expected earnings of $0.85 per share for the quarter. Analysts' estimates typically exclude special items.

The company noted that underlying RC profit for the third quarter more than doubled from last year and was the highest quarterly result in more than five years, including significant earnings growth from the Upstream and Rosneft.

In the quarter, profit before taxation surged to $5.44 billion from $2.96 billion last year. Attributable profit was $3.35 billion, up sharply from $1.77 billion last year.

Sales and other operating revenues climbed to $79.47 billion from $60.02 billion last year.

Reported oil and gas production was 3.6 million barrels of oil equivalent a day. Upstream production, excluding Rosneft, was 2,460 mboe/d, flat with the year-ago period. Underlying production increased by 6.8 percent, due to the ramp-up of major projects. Rosneft production of 1.2 million barrels of oil equivalent a day was 2.8% higher than last year.

Further, BP announced a quarterly dividend of 10.25 cents per ordinary share, or $0.615 per ADS, which is expected to be paid on 21 December 2018.

Looking ahead, BP said it expects fourth-quarter reported production to be higher than the preceding third quarter due to the acquisition of BHP assets in the US Lower 48. The company also expects lower industry refining margins in the fourth quarter.

The acquisition from BHP is expected to complete on October 31.

BP said it now expects to fund the entire transaction from available cash, rather than using equity for the deferred consideration.

In London, BP shares were trading at 553.64 pence, up 3.45 percent.

In ppre-market activity on the NYSE, BP shares were gaining 4.2 percent to trade at $42.69.