BP Earnings: Earnings Fall on Lower Commodity Prices; Management Turns Over, but Strategy Remains

BP's third-quarter earnings fell from the year before, while failing to meet market expectations, primarily due to lower oil and gas prices and weak gas and marketing trading results. Underlying replacement cost profit fell to $3.3 billion from $8.2 billion a year ago while operating cash flow increased to $8.7 billion from $8.3 billion the year before, due to working capital effects. Production increased 1.3% to 2,328 barrels of oil equivalent per day from the year before. BP repurchased $2.0 billion in shares during the quarter, including its $1.5 billion program announced last quarter as well as additional repurchases to offset dilution. Management will maintain the $1.5 billion repurchase rate in the fourth quarter. Gearing fell to 20% during the quarter but remains at the upper end of the peer group range.