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“We have big online projects coming up and our consumer-oriented businesses are really on the rise,” said Bernard Looney, CEO of BP, in statements sent by the multinational to Jornal Económico this Tuesday, October 27, at the day on which BP reported a return to earnings in the third quarter – with a net profit of $ 100 million (approximately € 84.57 million).
“We remain firmly focused on costs and capital discipline. And net debt continues to decline. We are firmly committed to updating our financial framework and our dividend policy, “explained Bernard Looney, ensuring that BP’s new strategy favors” performance in a transformative environment “.
In the previous quarter, BP’s new CEO, Bernard Looney, had acknowledged that “the main results were driven by the deliberate steps we took as we continue to reimagine energy and reinvent BP.”
Bernard Looney admitted that at BP, “the redefinition of long-term pricing assumptions and related charges for impairment and exploration has had a major impact. Furthermore, BP’s performance remained resilient, with good cash flow and – what it considered most important – with safe and reliable operations. ”
In the third quarter of 2020, the multinational BP was back in profit, presenting a positive net result of 84.57 million euros, according to company information disclosed to Jornal Económico. Leading market analysts believe that, while being “timid”, these profits reflect better performance than the market anticipates. For BP, this performance means that the company “keeps pace with the growth in oil demand”.
Bloomberg recalls that BP wants to cut 10,000 jobs
Bloomberg reported that BP narrowly avoided “avoids briefly,” the news agency said, “further losses in the third quarter. The international agency noted in its information on BP that the oil company’s performance in the The third quarter is due to the recovery in fuel sales which offset the weak refining margins. At present, Bloomberg says, “BP’s outlook remains very uncertain,” considering that the oil company “presented a surprise profit in the third quarter. quarter to show investors that it is on track for recovery, although it has also warned that this journey will be long ”.
Bloomberg also states that “BP has had some turbulent months”. He adds that “the company cut its dividend for the first time in a decade and the share price dropped to its lowest level 25 years ago, after CEO Bernard Looney announced the restructuring of the entire company towards greater green energy. But it also plans to cut 10,000 jobs ”.
CNBC also referred to BP’s “small profit”, exceeding analysts’ expectations. The Reuters agency warned of the uncertainty in the resumption of activity – in view of the unpredictable evolution of the Covid-19 pandemic -, maintaining the potential reduction in fuel demand and refining proceeds. The BBC reported that BP has returned to profits, but also in a “difficult environment”, it says that “the oil giant announces a performance in its business as it is transforming it”.
According to BP data for the third quarter of the year, the multinational recorded “a profit underlying the replacement costs of 100 million dollars” (approximately 84.57 million euros), which compares with the “losses of 6, $ 7 billion “(about 5.6 billion euros) recorded in the second quarter, but also with the” profits of $ 2.3 billion “(1.9 billion euros) recorded in the third quarter of 2019.
Operating cash flow reached US $ 5.3 billion “(€ 4.48 billion) in the third quarter,” excluding payment charges related to oil spills in the Gulf of Mexico, which compares with cash flow. of 4.8 billion dollars ”(about 4.05 billion euros), reported BP.
Net financial debt decreased by 422.8 million euros
“Net financial debt at the end of the third quarter was $ 40.4 billion (€ 34.16 billion), less than $ 500 million (about € 422.8 million) compared to the previous quarter,” he said. said. the multinational. BP plans to “reduce debt again in the next quarter, as the proceeds from divestments made in the meantime,” the company explained to JE. BP announced a dividend of 5.25 cents per share in the quarter.
“Upstream production costs, during the first nine months of 2020, were 10% lower than the same costs in 2019, reflecting progress in increasing operational efficiency, but also the result of the divestment strategy”, he said. the company stated, specifying that “The availability of the downsteam infrastructure (the refining device) was approximately 96.2%”.
It is recalled that on 4 August BP, in a statement sent to the London Stock Exchange, announced that it had recorded half-year losses of 18.03 billion euros, having halved its dividend payment for the second quarter, due to the decline in demand. of oil resulting from the Covid-19 pandemic. The losses in the first half of 2020 contrast with the attributable profit of 4.04 million euros recorded in the same period of the previous year.
BP’s total turnover from January to June was 77.12 billion euros, while in these six months the pre-tax losses were 20.86 billion euros. It should be recalled that BP’s net financial debt amounted to 34.76 billion euros as of June 30th.
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