Tuesday, November 2, 2010

BP (NYSE:BP) Exceeds Expectations, Earnings Reach $1.79 Billion

Although net income in the third quarter dropped about 67 percent, BP (NYSE:BP) was still able to generate earnings of $1.79 billion for the quarter. That was down from last year when they generated $5.34 billion, which was before the oil spill.

After excluding items, the oil giant had an operating profit of $5.53 billion, over an 18 percent increase from the $4.67 billion generated last year. Analysts had been looking for $4.6 billion.

BP took another pre-tax charge of $7.66 billion, bringing their total bill for the spill to $40 billion.

CEO Bob Dudley said in a statement, “This strong operating performance shows the determination of everyone at BP to move the company forward and rebuild confidence after the terrible events of the past six months.”

The additional charges were in connection to taking longer to seal the Macondo oil well in September, along with legal, cleanup and administration costs.

BP said they'll review the timing for reinstating the dividend sometime in the early part of 2011.

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