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BP returns to profits in Q3 on improving oil demand

BP returns to profits in Q3 on improving oil demand

Mubasher: BP achieved a small profit in the third quarter (Q3), beating analyst expectations as the company benefited from stronger oil prices and the absence of significant exploration write-offs, CNBC reported on Tuesday.

Third-quarter underlying replacement cost profit, used as a proxy for net profit, amounted to $100 million, compared with a loss of $6.7 billion in Q2 and $2.3 billion profit in Q3-19.

Refinitiv’s analysts had expected BP to incur a loss of $347 million in Q3-20.

The energy giant, moreover, announced a dividend of 5.25 cents per share for the quarter.

BP said recovering oil and gas prices and demand had helped the firm return to profit in the third quarter. This was partly offset, however, by a significantly lower oil trading result.

The results come as energy market sentiment remains subdued, with an upsurge in global coronavirus cases hampering the prospects of oil demand growth.