Seems to me BP's profit can only get better. Its been a very challenging quarter for BP with all the trouble in Ukraine, Russia and its oil fields in Kurdistan. Having said that the market has acted accordingly. I do believe this share will rebound to previous highs of 520 in the near future IMO. The rouble will only strengthen in time and the price of Brent will pick back up within the year as China climbs out of its economic slump (for their standards). Anyone agree?
dividend increase was already in the pipeline. BP made announcement earlier this year that as a result of the share buyback programme they would hope to increase the dividend every six months (0.25cents) for the next two years. If this is sustainable from profits we shall wait and see.
BP said that profits in the third quarter fell by almost a fifth, but still beat the market's expectations as it said it was "well on track" to hit its targets this year. Underlying replacement cost profit for the three months to 30 September totalled $3.04bn, down 18% on the $3.69bn earned in the same period last year. Analysts had pencilled in a figure closer to $2.93bn.
BP restarts North Sea gasfield that it owns with Iran: BP has recommenced production at one of the U.K.’s most important North Sea gasfields, nearly four years after the oil major was forced to halt output because of sanctions against Iran.
Although weaker oil prices mean energy companies and investors can expect lower profits in the coming months, big integrated oil majors may find their unloved oil refining businesses will soften the blow, according to a WSJ report.
For the likes of BP and Shell (RDS.A, RDS.B), their refining operations become more profitable when the oil they use is cheaper; for each dollar-per-barrel of improved profit margin for refined products, BP generates $500M/year in extra pre-tax operating profit, and BP says that refining margin was $5.70/bbl higher in recent weeks than in Q4 of last year.
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