BP reported a year-over-year jump in profits on Tuesday that beat analyst expectations.
BP booked a $1.62 billion profit for the third quarter, up from a $46 million profit in the year-ago quarter.
According to CNBC, analysts had expected profits of $686 million.
The company’s replacement cost (RC) profit rose to $1.66 billion in the third quarter compared to a profit of $1.23 billion in the year-ago period.
Third quarter underlying RC profit fell to $933 million, or $4.96 per ordinary share, down from $1.81 billion in the third quarter of 2015.
BP booked a net favorable impact of non-operating items and fair value accounting effects of $728 million for the quarter.
Net cash provided by operating activities for the third quarter declined to $2.5 billion compared to $5.18 billion in the year-ago quarter.
Excluding post-tax amounts related to the Deepwater Horizon spill, net cash provided by operating activities for the third quarter was $4.8 billion compared with $5.4 billion during the same period last year.
BP’s Upstream segment posted a third quarter RC profit before interest and tax of $1.19 billion, up from $743 million in the year-ago quarter.
The Upstream segment posted an underlying RC loss before interest and taxes of $224 million in the third quarter compared to a profit of $823 million.
The Downstream segment booked a RC profit of $978 million compared with a profit of $2.56 billion in the year-ago quarter.
The Downstream segment reported an underlying RC profit of $1.43 billion in the third quarter, down from $2.30 billion in the third quarter of 2015.
BP’s stake in Rosneft earned a RC profit of $120 million for the third quarter compared to $382 million in the year-ago period.
Production for the third quarter declined 5.9 percent to 2.11 million barrels of oil equivalent per day.
Underlying production for the quarter decreased by 2 percent, mainly due to seasonal turnaround and maintenance activities and the impact of weather and the Pascagoula plant outage in the Gulf of Mexico.
Capital expenditure on an accruals basis for the third quarter were $3.7 billion, with $3.6 billion being organic capital expenditure, compared with $4.3 billion for the same period in 2015.
The company said it has taken $2.1 billion in cumulative restructuring charges from the beginning of the fourth quarter 2014 to the end of the third quarter 2016.
BP added that it expects restructuring to continue throughout 2017.
“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,” BP Chief Financial Officer Brian Gilvary said.