LONDON (Reuters) – BP’s <BP.L> third-quarter profit dropped sharply, but still beat expectations, hurt by weaker oil prices, lower production and one-off charges linked to large divestments.
London-based BP reported on Tuesday third-quarter underlying replacement cost profit, the company’s definition of net income, of $2.3 billion, exceeding forecasts of $1.73 billion in a company-provided survey of analysts.
That compared with $3.83 billion a year earlier and $2.81 billion in the second quarter of 2019.
The sharp drop will not come as a surprise to investors after BP indicated earlier this month that it would take a non-cash charge of $2 to $3 billion in the quarter as it gets closer to divestments worth $10 billion by the end of 2019, a year ahead of schedule.
(Reporting by Ron Bousso, editing by Louise Heavens)