BP discloses 3rd quarter results

BP PLC reported that its third-quarter replacement cost (RC) profit reached US$4.7 billion, compared to US$5.3 billion a year ago. But after adjustments for net loss from non-operating items worth US$321 million and net unfavorable fair value accounting effects which reached US$162 million (both on a post-tax basis), the company’s underlying RC profit for the third quarter was US$5.2 billion, compared to US$5,463 million for the same period last year.
RC profit for the nine months was US$9.9 billion, compared to US$16.3 billion in 2011. After adjustments for a net loss from non-operating items amounting to US$3.5 billion and net unfavorable fair value accounting effects of US$325 million (both on a post-tax basis), BP’s underlying RC profit for nine months was US$13.7 billion, compared to US$16.7 billion for the same period last year. On a pre-tax basis, the company’s group income statement included a net adverse impact of US$59 million for the third quarter, pertaining to the Gulf of Mexico oil spill and US$882 million for the nine months. BP’s report said all expenses relating to the Gulf of Mexico oil spill were treated as non-operating items.
The report contains details of the enormous financial obligations BP had to assume following the Deepwater Horizon accident and oil spill in 2010, as well as payments made to individuals, communities, institutions and government. It also has assumed financial responsibility for the environmental restoration required to mitigate the effects of the oil spill. Also included in the report is BP’s financial obligation for deep cleaning of the beach areas in Louisiana when Hurricane Isaacs landfall in the Gulf Coast exposed buried residual oil. (October 30, 2012)