BP's Earnings Beat Estimates Despite Softer Oil Prices

Oil and gas production giant BP reports second-quarter earnings and revenue better than Wall Street forecasts.
By M. Corey Goldman ,

Oil and gas production giant BP  (BP) - Get Report Tuesday reported second-quarter earnings and revenue that came in better than Wall Street forecasts as softer oil prices than a year ago were offset by rising demand for both oil and natural gas.

The U.K.-based company posted underlying replacement-cost profit of $2.81 billion, or 83 cents a share, in the quarter ended June 30, vs. $2.82 billion, or 85 cents a share, in the comparable year-ago period. Analysts polled by FactSet had been expecting earnings of 75 cents a share.

Revenue was $73.75 billion, down 4.1% from a year earlier though above analysts' consensus forecasts of $71.5 billion. BP also reported Gulf of Mexico oil spill payments of $1.4 billion on a post-tax basis in the second quarter. The company maintained its quarterly dividend at 10.25 cents a share.

Looking to the third quarter of 2019, BP said it expects "a lower level of turnaround activity and lower industry refining margins." Further out, the company noted it is "right on target" for its five-year plan of cutting costs, streamlining operations and boosting profits.

American depositary receipts of BP were up 1.53% to $39.69 in early trading on the New York Stock Exchange. They ended the day Monday up 11 cents at $39.09.

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