By David Hodari
BP PLC (BP.LN) said Tuesday that it swung to a loss in its third quarter earnings, amid lower exploration and production earnings. Here are some other remarks from the report:
On group performance:
"BP delivered strong operating cash flow and underlying earnings in a quarter that saw lower oil and gas prices and significant hurricane impacts. Our focus remains firmly on maintaining financial discipline and delivering safe and reliable operations throughout BP. We're also continuing to advance our strategy, making strong progress with our divestment plans and building exciting new opportunities in fast-growing downstream markets in Asia."
On financial performance:
"BP's third quarter results demonstrate the resilience of our financial performance, even at lower prices. Net debt stayed flat in the quarter, though gearing rose slightly following a reduction in equity as a result of divestment-related impairment charges. With growing free cash flow and receipt of disposal proceeds, we continue to expect net debt to trend down over time."
"Upstream production for the third quarter, which excludes Rosneft, was 2,568 million barrels a day, 4.4% higher than a year earlier. Underlying production, adjusted for portfolio changes and production-sharing agreement impact, decreased by 2.5% due to increased maintenance and the impact of Hurricane Barry in the U.S. Gulf of Mexico."
"During the quarter, BP announced an agreement to form a new joint venture in India with Reliance Industries Ltd. This will build on Reliance's current retail network of over 1,400 sites across India and includes access to the country's fast-growing aviation fuels market."
On the energy transition:
"In the quarter, BP continued to progress its advanced mobility agenda, announcing an agreement with DiDi, the world's leading mobile transportation platform, to develop an electric vehicle charging network in China, the world's largest market for electric vehicles... BP continues to take steps to limit operational emissions of methane, including announcing that it will deploy continuous measurement of methane emissions through technologies such as gas cloud imaging on all future major BP-operated oil and gas processing projects."
On Rosneft results:
"Compared with the same period in 2018, the result for the third quarter primarily reflects lower oil prices, partially offset by higher sales volumes. Compared with the same period in 2018, the result for the nine months primarily reflects favorable foreign exchange effects and higher sales volumes, partially offset by lower oil prices."
On the Gulf of Mexico oil spill:
"Net cash from operating activities relating to the Gulf of Mexico oil spill on a pretax basis amounted to an outflow of $443 million and $2,569 million in the third quarter and nine months of 2019 respectively. For the same periods in 2018, the amount was an outflow of $560 million and $3,258 million respectively... Cash outflows in 2018 also include the final payment made under the 2012 agreement with the U.S. government to resolve all federal criminal claims arising from the incident."
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