BP profits hit by drop in oil prices

AP News
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Posted: Oct 28, 2014 7:02 AM

LONDON (AP) — British oil company BP says its earnings have fallen in the third quarter as the price of crude oil dropped globally.

The company says its replacement cost profit, a key gauge of earnings for oil companies, fell to $2.39 billion in the three months to September from $3.18 billion in the same period a year earlier.

Its earnings from upstream operations, in which it explores and extracts oil, were down, reflecting the drop in oil prices. The benchmark international contract for crude has fallen $28 in the past four months, to around $86 a barrel.

BP has a stake in Rosneft, the Russian state-controlled oil company. It said Tuesday, however, that sanctions by the U.S. and European Union on Russia "have had no material adverse impact."