BP suffers $ 2.5 billion in third-quarter losses

British oil giant BP announced losses of $ 2.5 billion in the third quarter on Tuesday despite the rise in oil and gas prices, due to unfavorable accounting issues of $ 6.1 billion.

Disregarding accounting issues, the group made a profit of $ 3.3 billion in the third quarter of this year, against $ 86 million a year earlier. In the third quarter of 2020, BP had posted a loss of $ 450 million.

The burden that sank the group’s result is linked to “the increase in the prices of gas futures contracts towards the end of the quarter” that forces the accounting of the risk even before its delivery, explains BP. But this difference “must be absorbed if prices go down” over the course of deliveries.

Bernard Looney, CEO, highlighted in a statement the group’s performance, driven especially by “the prices of raw materials”, in a quarter marked by the soaring of hydrocarbon prices and in particular by a historical increase in gas.

“These strong results and underlying cash flow provide the basis for the group’s continued reduction in net debt,” which was cut 20% in one year to $ 32 billion, according to the BP statement.

The oil company also continues with a share buyback program, and announces that it will allocate 1,250 million dollars for this purpose, after 900 million executed in the third quarter.

BP published its results after other oil groups such as the French TotalEnergies or the American ExxonMobil and Chevron, which have fully benefited from the rise in hydrocarbon prices, with billions of dollars of profits.

However, its competitor Shell also saw its accounts for an accounting burden and posted losses of $ 447 million in the third quarter.

ode / nth / Mar / rev



Reference-www.infobae.com

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