Shares in BP fell by 3% after the release of third quarter results. While profits beat expectations to come in at $933m, on an underlying replacement cost basis, this included a boost from a $164m tax advantage. $933m compares to $1,819m in Q315 and $720m for in Q216.
The quarterly dividend is held at 10 cents per share.
George Salmon, Equity Analyst at Hargreaves Lansdown:
"With Brent crude hovering around the $50 mark, the bottom end of BP’s stated breakeven level, investors will be keeping a close eye on where the oil price goes from here. Should it break through and stabilise, there will be a collective sigh of relief from shareholders. After a Herculean effort on cost-cutting and disposals, it would go a long way to easing concerns about the dividends long term viability.
At the half year BP put a final figure on the Deepwater Horizon fines and the group is now a much leaner business. That puts it in a much better position than it has been for some time.
However, there are still plenty of nasties around, even as the oil price has recovered somewhat this quarter. All three of BP’s main divisions reported a drop in underlying replacement cost profit, add to that the divisions within OPEC, and the environment remains uncertain."
NOTES TO EDITORS
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