The third-biggest oil producer on the territory of Europe, BP Plc, reported a third-quarter profit, that exceeded initial analysts estimates. The result is probably due to the underlying production increase and refining margins improvement.
The companys Chief Executive Officer, Bob Dudley, said in BPs statement, cited by Bloomberg: “BP’s operational momentum continues to deliver results.” As reported by the Financial Times, Mr. Dudley also said: “Growing underlying production of oil and gas and a good downstream performance generated strong cash flow in the third quarter, despite lower oil prices. This keeps us well on track to hit our targets for 2014.”
According to the statement, BPs net income adjusted for one-time items and inventory changes declined by 19% to $3 billion during the third fiscal quarter of the year, in comparison with a net result of $3.7 billion posted a year ago. This figure, however, topped the initial analysts estimates, pointing to $2.93 billion.
In addition, the company revealed it intends to pay a 5.3% larger dividend than the one paid a year ago. The dividend is to be at the amount of 10 cents per share during the quarter ended on September 30th.
As the U.K.-company stated, its production over the period amounted to 2.15 million barrels of oil on a daily basis. The figures are 2.7% lower compared to the same period a year earlier. BP had previously posted a warning that its production was expected to fall partly due to maintenance. The company also said it expects its fourth-quarter production to be slightly lower, because of weather conditions impact.
The U.K.-based company has been restraining its investments in new projects and controlling its expenses amid some investor pressure. As reported by the Financial Times, BPs CEO said that a “strictly disciplined approach to investment” in combination with modest gearing levels would “provide resilience through periods of oil market volatility”.
BP Plc added 0.62% to trade at GBX 432.90 per share as of 13:40 GMT, marking a one-year decrease of 4.25%. The company is valued at GBP 78.08 billion.
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