BP says quarterly net profit surges to $1.6bn

BP said today that net profits rocketed in the third quarter, aided partly by cost-cutting, and announced further spending cuts in response to low oil prices.
Earnings after tax soared to USD 1.6 billion in the three months to September, compared with just USD 46 million in the same period a year earlier, BP said in a results statement.
Chief Financial Officer Brian Gilvary added BP was making "good progress" in adapting to a "challenging" oil price environment.
The company meanwhile cut 2016 capital expenditure to USD 16 billion, compared with the previous guidance of USD 17-19 billion.
BP added that profit, adjusted for exceptional items and oil inventory changes, dropped to USD 933 million in the reporting period from USD 1.8 billion a year earlier, as underlying earnings took a hit from low oil prices.

That did however beat market expectations of $719.2 million, according to analysts polled by Bloomberg.
BP also warned oil refining margins would continue to take a hit in the final three months of the year, but it added it expects production to increase slightly in the fourth quarter.
The group is slashing costs in the face of weak oil global oil prices and sliding refining margins, with the cost of crude at around USD 46 per barrel in the third quarter compared with USD 50 a year ago.