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BP CEO Bob Dudley. Image courtesy of BP/Youtube.

BP’s third quarter profits sank 63 percent over last year as western sanctions plunged the company’s Rosneft earnings by 90 percent.

The UK-based supermajor reported a profit of $1.26 billion, or 42 cents a share, during the July to September period, down from $3.5 billion, or $1.11 a share, during the same period last year.

Third quarter revenues dipped to $93.9 billion from $96.6 in 2013 while its upstream profits tumbled by 20 percent.

Earnings from BP’s 19.8 percent stake in Russia’s Rosneft dropped by 90 percent to $87 million as the Ruble remained weak against the dollar and oil prices slumped in key regions in Russia.

Oil production fell slightly by less than 1 percent to 3.15 barrels of oil equivalent per day, mostly due to the end of a production agreement with companies in Abu Dhabi that expired earlier this year.

However, when the Abu Dhabi deal is excluded, the company’s underlying production climbed by 4.1 percent thanks to strong output in the Gulf of Mexico.

BP took a $770 million write down for upstream assets in India, citing uncertainty surrounding gas prices in the country.

The company’s downstream business also took a $355 million loss after a $552 million impairment charge was leveled against the unit following a strategic review.

However, the downstream unit’s underlying, pre-tax earnings jumped to $1.5 billion from $720 million last year on the strength of growing output from the company’s Whiting refinery.

The company said its still on track to hit its 2014 targets financial targets.

“Growing underlying production of oil and gas and a good downstream performance generated strong cash flow in the third quarter despite lower oil prices. This keeps us well on track to hit our targets for 2014.” BP CEO Bob Dudley said in a written statement.

BP is tightening its expenditures and now plans to spend $23 billion by the end of the year, down from previous projections of $24 billion to $25 billion.

BP rose its quarterly dividend by 10 cents.