Wednesday 29 October 2014

BP report Q3 2014

BP, Q3, 2014, front page

There were no major changes of the share price due to the publication of the Q3 report from BP. Media claims two things that the report was better than expected even though the influence of Rosneft turned out to be heavier than expected due to decreased valuation of the ruble etc.

For the full report from where I have received the information to this short summary can be found here. If you want to see the previous summary please see British Petroleum (BP) report Q2 2014.

Below is the only table that I will present this time which is the financial statement and there we see that the quarter was seriously bad with more then 2 billion USD less in profit in comparison to the same period last year even though the revenue were pretty much flat. For BP it is a combination of effects. The decreased oil price, the large share in Rosneft with EU sanctions on Russia and Russian companies (they claim no impact in the notes) as well as the drop of the ruble. Which means that last quarter they received around 1 billion from Rosneft and this quarter the return was pretty close to zero. The share price has also been knocked down this last quarter due to that they were charged of showing gross neglect with the Deep Horizon. They try to go against it...

If we look at the running nine months then things are still looking pretty ok with high revenue and high profit especially if one removes the one time effect of the sale of TNK-BP.

BP, Q3, 2014, financial statement

Conclusion: A tough quarter for BP and probably the entire oil and gas industry in general but maybe slightly more so for BP due to the strong connection with Russia. They have continued to buy back plenty of shares and their divestment plans are soon finished and at least they claim to be on target. I will continue to collect a nice dividend from BP which they even decided to increased this quarter. I will continue as a shareholder in BP.

To find out more please see analysis of British Petroleum (BP) 2014.


Chris Bailey said...

Good timely write-up! Did you pace through the presentation document too? I found it most helpful as it also included comments from the CFO on each slide. Anyhow I wrote it up too here

Keep going with everything!


Fredrik von Oberhausen said...

Hi Chris,

Nah, I did not look at the presentation document. I will now though.

Please click this for Chris article on BP.

Thanks for the info!