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BP - shares fall as conditions remain tough

George Salmon | 1 November 2016 | A A A

You’re about to read press releases, which we’ve written for media use only. They’re not intended for individual investors. They’re not personal advice and don’t include any recommendations.

No recommendation

You’re about to read press releases, which we’ve written for media use only. They’re not intended for individual investors. They’re not personal advice and don’t include any recommendations.

Media contact:

Danny Cox

Head of Communications

Direct Line: 0117 317 1638

Mobile: 07989672071

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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Hargreaves Lansdown is equipped with a live in-house broadcast camera via the Globelynx network and has an ISDN line available for radio interviews - 0117 934 9006. To arrange an interview with a Hargreaves Lansdown spokesperson please contact the person you wish to speak to directly using the contact details above, or call Globelynx on 0207 963 7060 or email globelynx@globelynx.com.


You’re about to read press releases, which we’ve written for media use only. They’re not intended for individual investors. They’re not personal advice and don’t include any recommendations.