BP has reported net profit for the third quarter of $1.62 billion, trouncing consensus expectations of $686 million, but still only delivering around half of last year's result for the period.
This as the oil major sliced spending by another $1 billion dollars as the hit from weaker oil prices continued to bite. The company warned industry refining margins will continue to be under pressure in the fourth quarter yet despite this, the oil major says it expects a slight improvement in the final quarter of the year.
Underlying replacement cost profit, the actual metric that BP use for net income, came in at $933 million for the quarter, compared with $1.8 billion a year ago. Shares slipped by around 1.2 percent as the European session began on Tuesday.
Brian Gilvary, BP's chief financial officer said in the company's press release: "We continue to make good progress in adapting to the challenging price and margin environment. We remain on track to rebalance organic cash flows next year at $50 to $55 a barrel, underpinned by continued strong operating reliability and momentum in resetting costs and capital spending."
"At the same time we are investing in the projects, businesses and options to deliver growth in the years ahead," the statement added.