LONDON (Reuters) - British oil major BP Plc beat analysts’ forecasts with a 148 percent rise in third-quarter replacement cost profit to $10.029 billion, due to higher oil prices.
The replacement cost result, which strips out unrealized gains or losses related to changes in the value of fuel inventories, included a net gain of $1.147 billion related to non-operating items.
“The upstream performance has been very good, but the big surprise has been the outperformance of the downstream (refining and marketing) side.”
See shares in the British oil major up about 5 percent.
TONY SHEPARD, CHARLES STANLEY & CO
“The headline net income figure is way above the market expectations and it is coming from both the E&P (Exploration and Production) and the refining divisions — two of BP’s core divisions.
“In E&P, the major driver is obviously the oil price, which is much higher than it was last year, and in R&M they have a restructuring plan underway and that looks as if it has helped the results there.”
Reporting by Malcolm Locke and Philip Waller; Editing by Paul Bolding/Quentin Bryar