BP Delivers 3Q Profit Boost
BP plc’s group chief executive, Bob Dudley, has stated that there is still room for further improvement after the company posted a profit increase in the third quarter of 2017.
The oil major’s profit for the period rose to $1.76 billion, up from $144 million in the second quarter of 2017 and $1.62 billion in the third quarter of 2016. Underlying replacement cost profit for the third quarter was $1.9 billion, compared with $684 million in previous quarter and $933 million in the third quarter of last year.
BP expects around $4.5 billion in disposal proceeds for the full year, with $1 billion received in the first nine months. Proceeds expected in the fourth quarter include those from the SECCO transaction ($1.4 billion) and the initial public offering of BP Midstream Partners LP’s common units ($0.7 billion).
Reported group oil and gas production in the third quarter averaged 3.6 million barrels of oil equivalent per day, which is 14 percent higher than during the same period in 2016.
Three Upstream major projects began production in the quarter; the Persephone project in Australia, the Juniper project in Trinidad, and the first phase of the Khazzan tight gas development in Oman. The Zohr project in Egypt is also on track to start up before the end of the year.
“We are steadily building a track record of delivering on our plans and growing across our businesses,” Dudley said in a company statement.
“There is still room for further improvement and we will keep striving to increase sustainable free cash flow and distributions to shareholders,” he added.
Oil and gas analysts at investment banking firm Jefferies described BP’s underlying operational results as ‘robust’, and noted that the company is generally delivering on its objectives.
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