BP profit declines by 40% in September quarter on oil price slide

BP’s profits fell sharply in the third quarter, hurt by lower oil prices, but strong refining operations helped the company beat expectations even after taking a one-off $2.6 billion (£2.03 billion) charge linked to asset sales.

BP, like other big energy companies, has been hit by a sharp drop in oil prices as trade tensions between the United States and China have impacted global oil demand.

The British oil company made its first net loss in more than three years in the quarter due to the one-off charge, but Chief Executive Bob Dudley, who will step down next year after a decade at the helm, said underlying earnings and cash flow were strong.

Cash flow from operations was unchanged in the quarter from a year earlier at $6.1 billion despite a 17 per cent drop in oil prices.