BP: Q3 Replacement Cost Profit $2.2B on Stronger Margins

SECAUCUS, NJ (DTN) –- BP reported on Tuesday (11/04) an underlying replacement cost profit of $2.2 billion in the third quarter, compared with $2.4 billion in the second quarter, driven by lower refinery turnaround activity, stronger realized refining margins and higher production.

Reported profit for the quarter was $1.2 billion, versus $1.6 billion in the prior quarter, due to inventory loss holdings of $100 million and adjustment impact of another $100 million, both net of tax.

This followed weak oil trading results, seasonal effects of environmental compliance costs, lower realizations and higher charges related to other businesses and corporate activity, BP said.

In refining and trading, the company reported $549 million in underlying replacement cost profit before interest and tax for customers and products. This was against a second quarter figure of $477 million.

In oil production & operations, replacement cost profit before interest and tax for the third quarter was $2.1 billion, versus $1.9 billion in the second.

Average realizations in the third quarter for liquids were $59.58 bbl and $3.32 mcf for natural gas — versus $59.74 bbl and $3.66 mcf, respectively, in the second quarter.