#Profit #Plummets #Refining #Margins #Oil #Trading
Key takeaways
- BP on Tuesday reported third-quarter earnings that fell well short of analysts’ expectations, hurt by weak refining and oil trading margins.
- It reported net earnings of $206 million, a massive decline from last year’s earnings of $4.86 billion and well below the consensus estimate of $1.96 billion made by analysts surveyed by Visible Alpha.
- BP posted 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, though it beat analysts’ expectations.
British Petroleum (BP) on Tuesday reported third-quarter earnings that fell well short of analysts’ expectations, hurt by weak refining and oil trading margins.
It reported net earnings of $206 million, a massive decline from last year’s earnings of $4.86 billion and well below the consensus estimate of $1.96 billion made by analysts surveyed by Visible Alpha.
The oil giant posted 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 beat analysts’ expectations.
He blamed “weak refining margins generated, weak oil trading results and lower oil revenues, partially offset by higher gas revenues” for the decline compared to last quarter.
Oil companies struggle with pessimistic demand forecasts
Oil companies are struggling with a gloomy demand outlook, as a slowdown in China’s economy puts pressure on imports of the commodity and hopes for calming tensions in the Middle East drag down prices.
BP’s (BP) American depositary receipts (ADRs) fell nearly 3% in pre-market trading. They were down about 12% this year through Monday’s close.
#Profit #Plummets #Refining #Margins #Oil #Trading
