By Ron Bousso and Shadia Nasralla
LONDON (Reuters) -BP on Tuesday reported third-quarter earnings of $3.3 billion, missing analysts’ forecasts, as strong oil trading and refining margins were offset by weak gas results.
The British company maintained its dividend unchanged at 7.27 cents per share and extended its $1.5 billion share buyback programme over the next three months.
The third-quarter underlying replacement cost profit, the company’s definition of net income, missed forecasts of $4 billion in a company-provided survey of analysts, mainly due to significantly lower earnings from its gas and low carbon division.
“We remain committed to executing our strategy, expect to grow earnings through this decade, and are on track to deliver strong returns for our shareholders,” interim CEO Murray Auchincloss said in a statement.
The $3.3 billion earning compared with a $2.6 billion profit in the second quarter and $8.15 billion a year earlier.
The results rose from the second quarter due to higher oil and gas production, strong refining margins, lower refinery maintenance and “a very strong oil trading result”.
Those were partly offset by weak natural gas marketing and trading, however, BP said.
The company expects industry refining margins in the fourth quarter to be “significantly lower” than in the third.
BP expects capital expenditure of $16 billion this year – at the lower end of its indicated range of $16-$18 billion.
(Reporting by Ron Bousso and Shadia Nasralla; editing by Louise Heavens and Jason Neely)
