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BP profits tumble, stock rises
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November 3, 1998: 8:25 a.m. ET
Optimism on Amoco merger outweighs collapsing oil price
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LONDON (CNNfn) - British Petroleum, the world's third-largest publicly-traded oil company, reported a 40 percent slump in third-quarter profits, but its stock rose on the news.
Third quarter profits excluding one-time items came in at $686 million (411 million pounds) against $1.13 billion last year.
Its nine-month earnings amounted to $2.54 billion, down 40 percent from last year.
Tumbling oil prices have driven a hole through earnings from the major international oil companies. The price of crude fell 30 percent in the third quarter compared with the same period last year.
BP's results were mildly better than expected, and investors were cheered by the group's statement that its $53 billion acquisition of Amoco (AN) is expected to be completed by the end of the year. Discussions with regulatory bodies were said to be "going well".
Its effort to cut refining costs also appears to be working.
BP (BP) shares rose 4 percent, or 35.5 pence to 930.5 on the news.
Profit declines at the major international oil companies have averaged more than 40 percent in the latest quarter.
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British Petroleum
Amoco
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