BP at top of FTSE 100 on latest cost-cutting plan
BP is the biggest riser on the FTSE 100 in early morning trading as shareholders give the thumbs up to the company's latest plans to cut costs, increase divestments and reduce capital expenditure - all to help sustain dividend payments.
BP's preferred measure of profitability, underlying replacement cost profit - a measure that is adjusted for "non-operating" items and fair value accounting effects - also came in comfortably ahead of forecasts in the third quarter at $1.8bn, despite continued pressure on the oil majors from weak prices. Brent is currently trading around $47 a barrel.
BP's shares are up 1.834 per cent at 391.5p at publication time, having opened up more than 2 per cent on Tuesday.
BP's group chief executive Bob Dudley and chief financial officer Brian Gilvary are spending today outlining to investors the company's latest plans to tackle weak oil prices.
In a statement earlier on Tuesday, BP announced it would further reduce its capital expenditure, expand its divestment programme and further cut costs (read more here).
BP said it is planning for balanced cash flows by 2017 at around $60 per barrel.