LONDON (Nov 1): BP reported a near halving in third-quarter earnings on Tuesday and cut its 2016 investment plans by another US$1 billion as weak oil prices cut into profits yet tighter spending helped the British oil major still beat analysts' estimates. BP's third-quarter underlying replacement cost profit, the company's definition of net income, fell to US$933 million from US$1.8 billion a year earlier but beat the US$780 million expected by analysts. Oil prices are now trading at around US$49 a barrel, meaning BP is banking on a slight rise in prices going into next year. To achieve a leaner balance sheet, BP said it would lower its 2016 capital expenditure to around US$16 billion from the US$17–19 billion expected at the start of the year, and target US$15–17 billion for 2017. BP said asset sales stood at US$2.7 billion at the end of the quarter and the company remained on track to sell US$3–5 billion of assets this year.

Source: The Edge Markets November 01, 2016 09:44 UTC