London, October 30 - Neftegaz.RU. UK oil major BP saw its profit more than double during the third quarter of 2018, making it the highest quarterly result in more than 5 years.
For the Q3 2018, BP’s underlying RC profit was $3.8 billion, which is more than a double from a year earlier and the highest quarterly result in more than 5 years, including significant earnings growth from the Upstream and Rosneft. This compares to a $1.87 billion profit in the Q3 2017.
Underlying RC profit is after adjusting RC profit for a net charge for non-operating items of $649 million and net adverse fair value accounting effects of $98 million (both on a post-tax basis). RC profit was $3.09 billion for the Q3, compared with $1.38 billion in 2017.
According to BP, compared with the same periods in 2017, the results for the Q3 were primarily affected by higher oil prices, significant foreign exchange impacts and certain one-off items. Organic capital expenditure for the Q3 was $3.7 billion compared with $4 billion for the same period in 2017. Inorganic capital expenditure for the Q3 was $0.7 billion compared with $0.5 billion for the same period in 2017.
CEO Bob Dudley, commented: «Operations are running well across BP and we’re bringing new, higher-margin barrels into production faster through efficient project execution. We have made very good progress with our acquisition from BHP and expect to complete the transaction tomorrow. This will transform our position in the US Lower 48 and we expect it to create significant value for BP.»
In the Upstream section of the business BP saw its underlying RC profit rise to $4 billion from $1.56 billion in the same period last year. Production for the quarter was 2,460mboe/d, flat with the Q3 of 2017. Underlying production for the quarter increased by 6.8%, due to the ramp-up of major projects.
Looking ahead, BP expects Q4 reported production to be higher than the Q3 due to the acquisition of BHP assets in the US Lower 48.