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British Oil major BP PLC reported better than expected fourth quarter earnings Tuesday. $BP raised it's dividend as revenue is boosted by surging production. $BP report after fellow majors $XOM, $CVX, RDSA, $COP  and $TOT reports. 

Bp Rig

BP PLC ADR (NYSE: $BP) Reported Earnings Before Open Tuesday

$0.84 Beat $0.79 EPS Forecast and $73.75 Billion in Revenue


BP reported Q2 earnings Tuesday with underlying replacement cost profit, used as a proxy for net profit, of $2.8 billion, versus $2.5 billion expected in a Reuters poll. That compared with a profit of $2.8 billion over the same period a year earlier and $2.4 billion in the first three months of 2019.

Earnings per American depositary share of $0.84 beat analysts’ estimate of $0.79 by about 7%. In the second quarter, BP’s earnings fell 1% YoY (year-over-year), less than analysts’ estimate of 7% YoY. Total revenue for the second quarter came in at $73.75 billion, down 4.1% from a year earlier.

BP also said it will pay a 10.25 cents per share dividend as it did last quarter.



Market Reaction Pre-market $39.90 ▲ +0.81 (+2.03%)

The profits in reference to oil prices come at a time when Brent crude was trading at $64.15 Tuesday morning, down more than 14% when compared to the end of the second quarter in 2018.  U.S. West Texas Intermediate (WTI) was trading at $57.25 on Tueaday, almost 20% lower from a year earlier.


  • BP said Gulf of Mexico oil spill payments of $1.4 billion on a post-tax basis in the second quarter were primarily the scheduled annual payments.


  • BP's upstream adjusted EBIT fell 3% YoY to $3.4 billion due to weaker realizations partly offset by stronger volumes.
  • The company’s hydrocarbon production rose 6.5% YoY to 2.63 million barrels of oil equivalent per day


  • Downstream earnings fell 6% YoY to $1.4 billion due to lower throughput because of turnaround activities.
  • BP’s refining margins expanded in the quarter, its Rosneft adjusted EBIT fell 17% YoY to $0.6 billion.

Dividends and Buybacks

BP announced a dividend payment of $0.615 per American depositary share to be made on September 20 giving a dividend yield of 6.3% 

In the second quarter, BP bought back $75 million in stock. This year, the company plans to buy back stock  in  the second half of this year.


BP has continued to work on optimizing its capex, selling non-core assets, and limiting oil spill charges. The company is forecasting capex of $15 billion–$17 billion from 2019 to 2021, and it plans to divest more than $10 billion in assets in 2019 and 2020.

BP expects oil spill charges of about $2 billion this year.

Live From The Pit 

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