BP Q3 Earnings Down with Slump in Global Production

October 25 00:00 2011

New York, October 25 (RainbowNewsLine.com) – The Q3 2011 earnings of BP Plc (NYSE: BP) went down from $5.5 billion a year earlier to $5.3 billion after adjustments for one-time items and changes in inventory. Analysts had estimated a profit of $5 billion but oil and gas production dropped 12 percent from a year earlier to 3.3 million barrels of oil equivalent a day. Profit fell less than expected as the company increased an asset sales target 50 percent to $45 billion.

The higher assets sales target includes the disposal of half of its US refining capacity in the Carson and Texas City plants. BP’s cash flow will be increased by 50 percent by 2014, on the most profitable production projects, as revealed by the company’s Chief Executive Officer, Bob Dudley.

Simon Hawkins, an analyst at MF Global U.K. Ltd. in London said that “Getting credibility behind an interim strategy is key for Dudley,” and added that “BP is making progress. It’s very sensible to focus on profitability and cash flows.”

BP shares rose as much as 3.2 percent to 451.9 pence in London, the highest since the beginning of August. The stock traded at 451 pence at 8:20 a.m. London time.

Net income rose to $4.9 billion from $1.8 billion in the third quarter of 2010.