The major London based oil and gas company, BP Plc., has surpassed the analysts’ expectation in third quarter
BP Plc. (ADR) will announce its third quarter earnings for the fiscal year of 2015 before the opening bell today. The company’s third quarter ended on September 30 and as it is seen, it has performed average in the market. The London based Oil Company managed to generate high revenues of $54.73 billion after surpassing the analysts’ expectations which stated that the company was expected to generate $49.39 billion. Regardless of the fact that the company surpassed the estimations, the revenues were declined by 41.7% if matched with prior year quarter.
The oil company also beat the adjusted Earnings per Share (EPS) expectations as it posted $0.59 earnings per share. The analysts’ expectations were $0.38 per share in the quarter ending on September 30. However the earnings per share majorly declined if compared to the EPS of the similar quarter prior year which was $0.99. The major downfall in the Earnings per share part is duly because of the lower crude oil prices in the region. To most extent, the company’s business depends on the rising and falling of crude oil prices and here it just did not go right.
According to a source, “BP has indicated maintaining its organic capital expenditure in the range of $17-19 billion per annum through 2017. The company had earlier forecasted organic capital expenditures to be around $24-26 billion last year. BP has also undertaken cost-cutting techniques and managed to cut controllable cash costs by $3 billion in the first nine months of 2015, when compared to the same period last year.”
This has further plunged its exploration and production segment. The upstream pre-tax underlying profit was also negligible when compared to the previous year’s third quarter to $0.8 billion against $3.9 billion in 2014. However, the company performed magnificently in the downstream segment and continued its good performance. The profits that the oil company made were $382 million in this quarter and it made only $110 million in 2014.
The CEO of BP Plc., Bob Dudley, is satisfied with the results of the company for this quarter. Mr. Bob Dudley stated in the earnings release that it had to change strategies to some extent. He said, “Last year, we acted decisively to reset BP for a sustained period of lower oil prices and the results are coming through well. We are now in action to rebalance our financial framework in this new price environment.”