SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C.
20549
Form 6-K
Report of Foreign
Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of
1934
for
the period ended November, 2016
BP p.l.c.
(Translation
of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or
will file annual
reports
under cover Form 20-F or Form 40-F.
Form
20-F
|X| Form
40-F
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----------------
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the
information to the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of
1934.
Yes
No |X|
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press
release
1
November 2016
BP third quarter 2016 results
●
3Q underlying
replacement cost profit $933 million
●
Robust 3Q
underlying operating cash flow of $4.8 billion, driven by reliable
operations and lower costs
●
Further progress
towards rebalancing organic cash flows in 2017:
- Cash
costs $6.1 billion lower than 2014 versus $7 billion target for
2017
- 2016
capex now expected to be around $16 billion versus original
guidance of $17-19 billion
●
Dividend unchanged
at 10c/share
BP
today reported a profit for the third quarter of 2016 of $933
million on an underlying replacement cost basis1. This compares to
$720 million profit for the previous quarter and $1.8 billion for
the third quarter of 2015.
The
quarter's result was affected by a weaker price and margin
environment. It was also negatively impacted by a number of mainly
one-off and non-cash items in the Upstream. However, the result
also included benefits from lower cash costs being incurred
throughout the Group and a positive one-time tax
credit.
Underlying
operating cash flow2, which excludes
pre-tax Gulf of Mexico payments, was $4.8 billion for the quarter.
It was $13.3 billion for the first nine months of the year,
benefitting from reliable operations and lower cash
costs.
BP
announced an unchanged dividend for the quarter of 10c per ordinary
share, expected to be paid in December.
Brian
Gilvary, BP's Chief Financial Officer said: "We continue to make
good progress in adapting to the challenging price and margin
environment. We remain on track to rebalance organic cash flows
next year at $50 to $55 a barrel, underpinned by continued strong
operating reliability and momentum in resetting costs and capital
spending.3
"At the
same time we are investing in the projects, businesses and options
to deliver growth in the years ahead."
BP's
cash costs4 over the past four
quarters were $6.1 billion lower than in 2014, continuing the
Group's progress towards 2017 cash costs being $7 billion lower
than in 2014. BP's expectation for 2016 organic capital expenditure
was reduced again and it is now expected to total around $16
billion, compared to original guidance of $17-19 billion given at
the start of the year. BP expects capital expenditure in 2017 to be
between $15 billion and $17 billion.
Cash
divestment proceeds for the year to date, including the partial
sale of BP's shareholding in Castrol India, are now $2.7 billion.
At the end of the third quarter, BP's gearing level was 25.9%,
within the targeted 20-30% range.
The
Brent oil price averaged $46 a barrel in the quarter, compared with
$50 a barrel in 3Q 2015, and gas prices outside the US were also
weaker. Refining margins were steeply down from a year earlier,
depressed by high product stock levels.
BP
reported an overall headline profit for the quarter of $1.6
billion, which includes a net gain of $728 million for
non-operating items and fair value accounting effects. This is
comparable to a profit of $46 million a year earlier and a loss of
$1.4 billion in the second quarter of this year, when significant
charges associated with the Gulf of Mexico oil spill were
taken.
Segment
results
Both of
BP's main operating segments continued to demonstrate strong
operational performance, with Upstream plant reliability at 95% and
refining availability in Downstream at 95.4% in the first three
quarters of the year.
BP's
Downstream segment delivered resilient results despite refining
margins weaker than both the previous quarter and, particularly, a
year earlier. Underlying pre-tax replacement cost profit was $1.4
billion, compared with $1.5 billion for 2Q 2016 and $2.3 billion
for 3Q 2015. Compared with a year earlier, the impact of the lower
refining margin environment was partially offset by an increased
retail performance and cost reductions across the
segment.
BP's
Upstream segment reported an underlying pre-tax replacement cost
loss of $224 million, compared with profits of $29 million for 2Q
2016 and $823 million for 3Q 2015. Compared with a year earlier,
the result reflected weaker oil and non-US gas prices and lower gas
marketing and trading results, together with the impact of higher
exploration write-offs and rig cancellation charges. The impacts of
these were partially offset by benefits of cost reduction
programmes in the Upstream.
BP
estimated its share of Rosneft net income for the third quarter to
be $120 million5, compared with $246
million for 2Q 2016 and $382 million for 3Q 2015. In July BP
received a dividend of $332 million, representing 35% of BP's share
of Rosneft's 2015 IFRS net income.
Strategic
developments
In the
Upstream, BP announced an agreement for a second production sharing
agreement with CNPC for shale gas in China and also amendment of a
number of concessions in Egypt that enabled the fast-track
development of the Nooros field.
In
September, BP and Det Norske completed the formation of their
Norwegian joint venture. On completion of the sale of BP Norge, BP
received a 30% equity interest in Aker BP.
The In
Amenas Compression project in Algeria is on schedule to commence
operation in the fourth quarter, which would make it the fifth
Upstream major project to start this year.
In
October, BP announced its decision not to continue its exploration
programme in the Great Australian Bight, off the south coast of
Australia.
In the
Downstream, BP continues to see marketing growth with retail
volumes increasing by 3% in the year to date and two new
convenience partnerships in Europe.
Further information:
Notes:
1.
Underlying replacement cost profit is adjusted for non-operating
items and fair value accounting effects.
2.
Underlying operating cash flow is net cash provided by operating
activities excluding pre-tax amounts related to the Gulf of Mexico
oil spill.
3. BP's
objective is to rebalance organic sources and uses of cash by 2017
at average Brent oil prices in the range of $50-55 per
barrel.
4. Cash
costs are the principal operating and overhead costs that
management considers to be the most directly under their control;
see www.bp.com for
further information.
5. The
operational and financial information for the Rosneft segment for
the third quarter of 2016 is based on preliminary operational and
financial results of Rosneft for the three months ended 30
September 2016. Actual results may differ from these
amounts.
Full BP
p.l.c. Group results for the third quarter of 2016 can be seen at
www.bp.com/results
Cautionary statement:
In
order to utilize the 'safe harbor' provisions of the United States
Private Securities Litigation Reform Act of 1995 (the 'PSLRA'), BP
is providing the following cautionary statement. This press release
contains certain forecasts, projections and forward-looking
statements - that is, statements related to future, not past events
- with respect to the financial conditions, results of operations
and businesses of BP and certain of the plans and objectives of BP
with respect to these items. These statements generally, but not
always, are identified by the use of words such as "will",
"expected to", "is intended to", "projected" or similar
expressions. In particular, among other statements, certain
statements regarding the expected quarterly dividend payment and
timing of such payment; plans and expectations regarding BP's goal
of balancing organic cash flows by 2017 at $50-55/bbl; BP's share
of Rosneft's net income; plans and expectations regarding continued
reductions in cash costs through 2017; plans and expectations
regarding BP's annual organic capital expenditure in 2016 and 2017;
and the scheduled commencement of operation of the Amenas
Compression project in Algeria.
Actual
results may differ materially from those expressed in such
statements, depending on a variety of factors, including: the
specific factors identified in the discussions accompanying such
forward-looking statements; the receipt of relevant third party
and/or regulatory approvals; the timing and level of maintenance
and/or turnaround activity; the timing and volume of refinery
additions and outages; the timing of bringing new fields onstream;
the timing, quantum and nature of certain divestments; future
levels of industry product supply, demand and pricing, including
supply growth in North America; OPEC quota restrictions; PSA
effects; operational and safety problems; potential lapses in
product quality; economic and financial market conditions generally
or in various countries and regions; political stability and
economic growth in relevant areas of the world; changes in laws and
governmental regulations; regulatory or legal actions including the
types of enforcement action pursued and the nature of remedies
sought or imposed; the actions of prosecutors, regulatory
authorities and courts; exchange rate fluctuations; development and
use of new technology; recruitment and retention of a skilled
workforce; the success or otherwise of partnering; the actions of
competitors, trading partners, contractors, subcontractors,
creditors, rating agencies and others; our access to future credit
resources; business disruption and crisis management; the impact on
our reputation of ethical misconduct and non-compliance with
regulatory obligations; trading losses; major uninsured losses;
decisions by Rosneft's management and board of directors; the
actions of contractors; natural disasters and adverse weather
conditions; changes in public expectations and other changes to
business conditions; wars and acts of terrorism; cyber-attacks or
sabotage; and other factors discussed elsewhere in this press
release and under "Principle risks and uncertainties" in the
results announcement for the period ended 30 June 2016 and "Risk
factors" in BP Annual Report and Form 20-F 2015 as filed with the
US Securities and Exchange Commission.
This
press release also contains financial information that is not
presented in accordance with generally accepted accounting
principles (GAAP). A quantitative reconciliation of this
information to the most directly comparable financial measure
calculated and presented in accordance with GAAP can be found on
our website at www.bp.com.
- ENDS
-
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
BP
p.l.c.
(Registrant)
Dated: 01
November 2016
/s/
J. BERTELSEN
..............................
J.
BERTELSEN
Deputy
Company Secretary