(Oil & Gas 360) – BP reported record third-quarter earnings of $8.46 billion on October 30, exceeding analyst expectations as higher oil prices, stronger refining margins, and improved trading results generated substantial cash flow. The company also announced plans to settle its remaining Deepwater Horizon liabilities ahead of schedule.
The British energy major’s underlying replacement cost profit, its preferred measure of adjusted earnings, increased from $2.2 billion a year earlier and exceeded the $7.33 billion analyst consensus. The result was BP’s highest quarterly profit under its current reporting methodology.
Operating cash flow reached $14.8 billion, allowing BP to reduce net debt by $8.4 billion to $13.9 billion and achieve its debt reduction target one year ahead of schedule.
The stronger financial performance was supported by elevated commodity prices and refining margins associated with disruptions to international petroleum supplies.
BP’s refining indicator margin increased to $46.70 per barrel, compared with $29.60 in the second quarter and $15.80 a year earlier. The company also reported stronger natural gas marketing and trading results.
Oil and gas production rem...