BP back in profit, but warns recovery uncertain

BP swung back into the black in the third quarter, just.

The oil major reported a profit of 86 million dollars, after a record loss of 6.7 billion dollars in the previous period.

Analysts had forecast a loss for the latest three months too.

BP benefited from a slow rise in crude prices.

But it warned that the pace of recovery remains very uncertain, with demand for some products still very low.

Jet fuel is perhaps the obvious example, with the global travel slump still keeping planes on the ground.

That among the factors leaving profit margins at BP refineries very thin.

Overall the company described the outlook for oil trading as ‘volatile and challenging’.

Now it’s looking to slim down in response.

BP will cut 10,000 jobs over the coming months at a cost of around 1.4 billion dollars.

Investors welcomed the return to profit, however.

Shares in the firm rose around 2.5 percent in early trade Tuesday (October 27).

Rivals including Shell and Exxon Mobil will report earnings later this week.