BP Raised Dividend, Beat on Earnings and Revenue in Monday Report

Energy

Published: October 31, 2012 7:30 am

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

BP PLC (NYSE: BP) reported third-quarter 2012 results in London on Monday morning. The oil supermajor posted adjusted diluted earnings per ADS of $1.63 on revenues of $90.6 billion. In the same period a year ago, the company reported earnings per ADS of $1.73 on revenues of $95.4 billion. Third-quarter results compare to the Thomson Reuters consensus estimates for earnings per ADS of $1.29 and $88.89 billion in revenues. One ADS is equal to six ordinary shares.

The British-based company also raised its quarterly dividend 12.5%, to $0.54 per ADS.

The company’s CEO said:

BP’s performance and the strong progress we are making in transforming the company give us the confidence to increase distributions to our shareholders. We are on track with our strategy to 2014 and are laying the right foundations for sustainable growth during the coming decade.

In comments related to the Gulf oil spill of 2010, the company noted that it had paid out $8.8 billion in claims, $7.1 billion of which went to individuals and businesses. The company has recognized a total cumulative charge to date of $38.1 billion, but as BP noted:

The total amounts that will ultimately be paid by BP in relation to all the obligations relating to the Incident are subject to significant uncertainty and the ultimate exposure and cost to BP will be dependent on many factors …

Of BP’s net profit of $5.17 billion, $1.29 billion is attributed to its 50% stake in TNK-BP, the Russian subsidiary that the company recently announced it would sell for $17.1 billion and a 12.84% stake in the buyer, Russia’s state-controlled oil giant Rosneft.

Third-quarter production totaled 2.26 million barrels of oil per day equivalent, roughly equal to the second quarter and down 3% from the third quarter of 2011. The company said production is expected to rise in the fourth quarter as maintenance at some sites is completed and new projects continue to ramp up.

BP noted that it has completed the sale of some $35 billion in assets since 2010, against a target of $38.1 billion. That total does not include the proceeds from the sale of its share of TNK-BP.

BP’s American depositary shares are up 3.9% in premarket trading this morning, at $43.36. They closed at $41.73 last Friday, in a 52-week range of $36.25 to $48.34. The consensus target price for the shares was around $50.81 before Monday’s report.

Paul Ausick

The Average American Is Losing Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.

Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.

But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.