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BP launches share buyback after Q3 earnings double

November 10/2017

MOSCOW (MRC) -- BP launched a share buyback scheme in a sign of resurgent confidence in the oil and gas industry after announcing a doubling in third quarter earnings, said the Financial Times.

The UK group reported underlying profits on a replacement cost basis the measure watched most closely by the market of USD1.87bn, compared with USD933m in the same period last year. This was much better than the USD1.58bn consensus forecast by analysts, according to RBC Capital Markets.

Brent crude, the international benchmark, has climbed above USD60 per barrel in recent days for the first time since 2015, increasing momentum behind recovery from the deep downturn of the past three years.

BP said it was able to cover its organic capital expenditure and dividend in the first nine months of this year at an oil price of USD49 per barrel reflecting deep cost cuts made since the 2014 oil market crash and highlighting the industrys resurgent profitability.

This has given BP confidence to resume a share buyback programme to offset the dilutive impact of its scrip dividend programme, under which investors can choose to receive their payouts in shares rather than cash.

Oil and gas production averaged 3.6m barrels of oil equivalent a day in the third quarter, up 14 per cent from a year ago. BP has seen its biggest surge of production for years during 2017 after starting operations from several new projects. This is helping rebuild its production base after years of retrenchment since the costly Deepwater Horizon oil spill in the Gulf of Mexico.
Author:Anna Larionova
Tags:petroleum products, petrochemistry, Crude oil, British petroleum, UK.
Category:General News
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