BP beats analysts’ expectations and swings to profit

BP

BP (LON: BP) has reported an underlying profit of $86m (£66m) for the third quarter of 2020.

Stronger oil prices led to a profit, beating analysts’ expectations of a $120m (£92m) loss for the three months ending 30 September.

BP reported a record $6.7bn (£5.1bn) loss in the second quarter of the year.

“BP’s future financial performance, including cash flows, net debt and gearing, will be impacted by the extent and duration of the current market conditions,” said the group.

“It is difficult to predict when current supply and demand imbalances will be resolved and what the ultimate impact of COVID-19 will be.”

Chief executive, Bernard Looney, said: “Having set out our new strategy in detail, our priority is execution and, despite a challenging environment, we are doing just that – performing while transforming. Major projects are coming online, our consumer-facing businesses are really delivering and we remain firmly focused on cost and capital discipline. Importantly, net debt continues to fall. We are firmly committed to our updated financial frame, including the dividend – the first call on our funds.”

So far this year shares in the oil giant are down over 50% and are still at near 25-year lows.

Credit Suisse analyst Thomas Adolff commented: “Despite the difficult macro backdrop, this was a strong underlying performance from BP.”

The group is planning to axe around 10,000 of its workforce over the next few quarters as part of cost-cutting measures.

Shares of BP (LON: BP) rose more than 2% during early-morning deals and are currently up 1.88% at 203,75 (0927GMT).