BP reported Q3 earnings on Tuesday morning and comfortably beat analysts expectations giving the board confidence to announce a share buyback.
BP’s net profit for the quarter was $1.9 billion against analysts expectations of $1.6 billion. The increase in profit represented a near 100% increases in earnings from a year earlier when the company suffered significant impairment charges.
The Oil major said a dividend of 10 cent per share would be paid in December in line with payments over the past few years. There have been concerns that BPs cashflow could put pressure on the dividend but asset sales and strength in the midstream has helped their cash position.
BP recorded an average price $49 per barrel of oil in the quarter highlighting the cost efficiencies the company has implemented to help the bottom line in a period of low oil prices.
Bob Dudley, BP CEO commented on the results:
“We are steadily building a track record of delivering on our plans and growing across our businesses. This quarter, three new Upstream projects and the highest Downstream earnings in five years, underpinned by reliable operations and disciplined spending, have generated healthy earnings and cash flow. There is still room for further improvement and we will keep striving to increase sustainable free cash flow and distributions to shareholders.”