BP beats quarterly earnings estimates, trims spending again | Reuters

By Karolin Schaps

LONDON BP reported a near halving in third-quarter earnings on Tuesday and cut its 2016 investment plans by another $1 billion as weak oil prices cut into profits yet tighter spending helped the British oil major still beat analysts' estimates.BP, which plans to lay off around 7,000 workers by the end of next year, said it was expecting further charges related to redundancies and other restructuring measures next year, adding to the $2.1 billion in charges incurred since the end of 2014.BP's third-quarter underlying replacement cost profit, the company's definition of net income, fell to $933 million from $1.8 billion a year earlier but beat the $780 million expected by analysts."We remain on track to rebalance organic cash flows next year at $50 to $55 a barrel," Chief Financial Officer Brian Gilvary said in a statement.

Oil prices are now trading at around $49 a barrel, meaning BP is banking on a slight rise in prices going into next year.To achieve a leaner balance sheet, BP said it would lower its 2016 capital expenditure to around $16 billion from the $17-19 billion expected at the start of the year, and target $15-17 billion for 2017.

BP joined the ranks of Shell, France's Total and U.S. majors Exxon Mobil and Chevron in beating expectations, with cost cuts helping to improve margins.Norway's Statoil and Italy's ENI disappointed, however.

BP said asset sales stood at $2.7 billion at the end of the quarter and the company remained on track to sell $3-5 billion of assets this year. (Editing by Jason Neely)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date: Nov 01, 2016 22:07 PM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See