BP Returns To Profit In Third Quarter

Photo credit: JeepersMedia, licensed under CC BY 2.0

Oil giant BP has reported its financial results for the third quarter of this year, showing a net profit of $100 million compared to a steep $6.7 billion loss in the previous quarter and a $2.3 billion profit in the same quarter last year. For the quarter, BP is issuing a dividend of 5.25 cents per share.

BP was significantly affected in the earlier months of this year when the coronavirus pandemic hit hard on the oil industry and even led to negative prices of oil futures for the first time in history. Due to that, BP took a big loss of nearly $7 billion during the second quarter of this year, a historic loss for the company.

Now with recovering oil prices, BP seems to have stabilized a bit even though its Q3 profit level ($100 million) is a far cry from the company's usual levels. BP is battling a tremulous oil market at a time when the company is also betting big on renewable-energy for future prospects. It's such that BP plans to raise its annual clean energy investment 10-fold to around $5 billion a year within 10 years.

During the third quarter, BP bolstered its business in the clean energy sector through efforts including an offshore wind partnership with American energy company Equinor, a renewable energy partnership with technology giant Microsoft, and a contract to deliver over 1,000 electric car charging points for Scotland Police via its subsidiary BP Chargemaster.

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