:max_bytes(150000):strip_icc()/GettyImages-1494539188-1860e9b184b74ceb859744ca0b4ff0b0.jpg "BP Profit Plummets on Lower Refining Margins, Oil Trading")
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KEY TAKEAWAYS
- BP on Tuesday posted third-quarter profit that fell well short of analysts’ forecasts, dragged by weaker refining margins and oil trading.
- It reported net profit of $206 million, a massive decline from last year’s $4.86 billion and well below the $1.96 billion consensus estimate of analysts polled by Visible Alpha.
- BP booked an underlying replacement-cost (RC) profit of $2.27 billion, down from the $3.29 billion it reported a year ago and $2.76 billion last quarter, although it topped analysts’ expectations.
BP (BP) on Tuesday posted third-quarter profit that fell well short of analysts’ forecasts, dragged by weaker refining margins and oil trading.
It reported net profit of $206 million, a massive decline from last year’s $4.86 billion and well below the $1.96 billion consensus estimate of analysts polled by Visible Alpha.
The oil giant booked an underlying replacement-cost (RC) profit of $2.27 billion, down from the $3.29 billion it reported a year ago and $2.76 billion last quarter, although it topped analysts’ expectations.
It blamed “weaker realized refining margins, a weak oil trading result and lower liquids realizations, partly offset by higher gas realizations” for the decline from last quarter.
Oil Companies Struggle With Downbeat Demand Outlook
Oil companies are struggling with a downbeat demand outlook, as China’s slowing economy weighs on imports of the commodity and hopes for a de-escalation in Middle East tensions drag prices lower.
BP (BP) American depositary receipts (ADRs) are falling nearly 3% in premarket trading. They are down around 12% this year through Monday’s close.