=BP reported earnings on Tue 1 Nov 2016 (b/o)

BP beats by $0.26, beats on revs; lowers FY16 capex :

• Reports Q3 (Sep) earnings of $0.30 per share, $0.26 better than the Capital IQ Consensus of $0.04; revenues fell 16.2% year/year to $47.05 bln vs the $45.89 bln two analyst estimate.
• Production
  • Production for the quarter was 2,110mboe/d, 5.9% lower than the third quarter of 2015.
  • Underlying production for the quarter decreased by 2.0%, mainly due to seasonal turnaround and maintenance activities, and the impact of weather and the Pascagoula plant outage in the Gulf of Mexico.
  • For the nine months, production was 2,209mboe/d, broadly flat versus the same period in 2015.
  • Underlying production for the nine months was broadly flat versus the same period in 2015.
• Capex - Capital expenditure on an accruals basis for the third quarter was $3.7 bln, of which organic capital expenditure was $3.6 bln, compared with $4.3 bln for the same period in 2015, almost all of which was organic.
  • Organic capital expenditure for 2016 is now expected to be around $16 bln, down from $17-19 bln prior, and in the range $15-17 bln in 2017.
• Outlook
  • Upstream - Looking ahead, we expect fourth-quarter reported production to be slightly higher than the third quarter, mainly reflecting recovery from planned seasonal turnaround and maintenance activity.
  • Downstream - In the fourth quarter we expect a higher level of turnaround activity compared with the third quarter, and that industry refining margins will continue to be under pressure
• Dividend: BP announced a quarterly dividend of $0.10 per ordinary share ($0.600 per ADS), which is expected to be paid on 16 December 2016. The corresponding amount in sterling will be announced on 6 December 2016.