BP beats forecasts with record profit, targets early settling of Deepwater Horizon bill
BP•BP reported third-quarter underlying replacement cost profit of $8.46 billion, above the $7.33 billion forecast, and said it would use surplus cash to settle remaining Deepwater Horizon liabilities. Net debt fell to $13.9 billion, reaching its target a year early.
1. Record quarterly profit
BP reported third-quarter underlying replacement cost profit of $8.46 billion, up from $2.2 billion a year earlier and above analysts’ $7.33 billion forecast. The company said higher prices and refining margins supported the result.
2. Deepwater Horizon liabilities
BP said it would use some surplus cash to settle its remaining liabilities from the 2010 Deepwater Horizon disaster. Related payables and provisions stood at $5.94 billion, under a payment schedule extending to 2033. CEO Meg O’Neill said the company was focused on reducing debt to protect its current dividend.
3. Debt and business results
Operating cash flow was $14.8 billion, and net debt fell to $13.9 billion, allowing BP to meet its net debt target a year early. Oil and gas production was around 2.2 million barrels per day, and all three business units beat expectations. BP recorded $4 billion in impairments, largely linked to its solar business Lightsource BP and offshore wind.
