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BP Profit Drops 34%

|Includes: BP p.l.c. (BP)

Originally published at www.seclive.com

BP plc (NYSE:BP) announced its third quarter financial results for fiscal 2013, reporting a profit decline of 34% from the year-ago period. The British oil company intends to sell $10B in assets by the end of 2015 and will use the proceeds from the sale to facilitate shareholder distributions, including share buybacks. Excluding one-time items, the company's earnings were $3.69B this quarter, or $1.17 per share. The sharp decline in profits is attributed mostly to a 76% drop in pretax downstream profits. Profit per refined barrel fell from $22.60 to $13.60 from a year ago. The U.S. downstream segment posted a loss of $22M, a significant difference from last year's $1.7B profit. BP has been spending a lot of money since the Deepwater Horizon explosion and resulting oil spill in the Gulf of Mexico, and has sold nearly $40B in assets and $42B in write-downs. Analysts believe these actions taken by BP are exactly what the company needs to do to improve shareholder value.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.