Oct 29, 2019
Oil major BP faces 41% slide in quarterly earnings
BP's third-quarter earnings dropped by 41 per cent compared to a year ago after the UK energy major was hit by lower prices, an impairment charge and a fall in production because of maintenance and weather effects. Ahead of its third-quarter earnings release, BP announced it would take an impairment charge after the agreed sale of a parcel of US assets for a value lower than it had on its books. On Tuesday BP said the charge would tally $2.6bn. In August BP announced the sale of its Alaskan business to Hilcorp for $5.6bn. It then said it would sell four packages of legacy gas assets from its US shale business, without disclosing the buyer or the price. Norway's Equinor last week said it had taken an impairment charge of nearly $2.8bn, with $2.2bn related to its onshore shale oil and gas assets in North America on "More cautious price assumptions". BP had also warned this month that oil and gas production would be hit by around 100,000 barrels of oil equivalent a day because of maintenance in some high-margin areas and because of weather effects, including Hurricane Barry in the US Gulf of Mexico.
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