BP’s Q3 Profits Take a Hard Hit
In the third quarter, BP’s underlying replacement cost profit—or net income, as the company likes to call it—dropped by more than half. The figure fell to $2.3 billion (£1.79 billion) from $3.83 billion a year ago.
What’s Worse? What’s Better?
- Oil Prices Slump: Crude costs slid, making every barrel worth less.
- Lower Production: BP didn’t produce as much as it expected.
- One‑Off Charges: A single, sizable hit (think “tax‑day” of one‑off costs).
Surprising the Wall Street Gurus
Interestingly, while the numbers looked grim, they still beat the analysts’ estimate of $1.73 billion. So, they’re not crashing in exactly the way forecasts predicted.
Cash‑Free Surprise
Earlier this month, BP hinted it would take a $2‑$3 billion non‑cash charge in the quarter. That’s part of a larger $10 billion divestment push aimed for the end of 2019—an entire year early.
Bottom Line
BP keeps juggling a tougher market, production hiccups, and the ‘real cost’ of selling assets. Investors will watch closely as the company pushes through this year‑ahead divestment drive.
