BP profits beat expectations but there is no news about Castrol sale
Oil major BP announced a smaller-than-expected fall in its third quarter underlying profit Tuesday, as a good performance across all divisions, led by refinery helped offset the impact from lower crude prices.
There was no news on the sale of Castrol Lubricants, which is the centerpiece of the $20 billion asset-sale campaign to reduce its debt.
BP, after a failed foray into the renewables sector under former CEO Bernard Looney has vowed that it will increase profits and reduce costs by re-routing its spending towards oil and gas.
BP launched a review in August of the best way to develop and monetise their oil and gas production assets. When new Chair Albert Manifold assumed his position last month, he called for a more radical reshaping BP's business portfolio to increase its profitability.
Murray Auchincloss, CEO of BP, said that recent discoveries, such as the Bumerangue offshore Brazil field, showed BP's current portfolio could produce oil for a long time.
He said, "I don't know if I can say that in the 25 years of working for BP."
In May, BP was reported to have begun selling Castrol, which analysts valued at about half of the divestment goal.
"Interest in the project is high." "We're making good progress and will update you as soon as we are ready," Auchincloss told a telephone call.
RESULTS OF REFINING LIFTS
BP reported a underlying replacement costs profit or adjusted net income of $2.21billion, compared to analysts' average estimates of $2.02billion in a poll provided by the company, and $2.27billion a year earlier.
All of BP’s main units exceeded consensus expectations.
BP's Customers and Products division, boosted higher refining profit margins, posted a $1.7 billion profit, surpassing last year's $381 millions, when BP experienced a major outage at the Whiting refinery in the U.S.
BP reported that the customers division achieved its best third-quarter results ever, with its refining availability at 97%. This is the highest quarter for the current portfolio in 20 years.
BP shares rose 0.2 points at 1450 GMT. This was better than a broader European energy index, which fell 1.1%.
BP's quarterly share-buyback program remained at $750m through the third quarter.
No more deals on infrastructure
Auchincloss predicted that completed or announced agreements to sell assets would total around $5 billion in this year. This was helped by the sale of minority stakes for its U.S. Onshore Pipelines announced on Monday.
Saudi Aramco and TotalEnergies saw their third-quarter profits fall as Brent crude prices fell 13% on average over the past three months. However, trading results, increased refining margins, and higher production offset the effect.
(source: Reuters)