Stronger oil prices help BP profit to beat forecasts

Oct 27, 2020

BP has reported a profit of $100m (£77m) for the third financial quarter, helped by stronger oil prices.

Analysts had expected a loss of $120m (£92m) for the quarter, which ended on 30 September, following a record $6.7bn (£5.1bn) loss in the previous quarter.

The business said: “The ongoing impacts of the COVID-19 pandemic continue to create a volatile and challenging trading environment.”

Oil prices have started to recover but the pace is slow.

Weak demand, particularly for aviation fuel due to the pandemic’s effect on air travel, is resulting in weaker refining profit margins.

“BP’s future financial performance, including cash flows, net debt and gearing, will be impacted by the extent and duration of the current market conditions,” BP said.

“It is difficult to predict when current supply and demand imbalances will be resolved and what the ultimate impact of COVID-19 will be.”

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