Oil major BP said profits in the second quarter were little changed from a year earlier as lower oil prices kept a lid on growth. The company also warned of lower production in the third quarter owing to seasonal turnaround and maintenance activities. Underlying replacement cost - a closely watched measure to gauge performance - for the second quarter of 2019 was $2.8bn, little changed from the $2.82m a year earlier, with reported oil and gas production up 4% to an average of 3.8m barrels a day of oil equivalent. Profits were hurt by a net charge for non-operating items of $861m, and net adverse fair value accounting effects of $175m, the company said. Half-yearly, underlying replacement cost (RC) profit was $5,169m, below the $5,408m reported in the same quarter a year earlier. Organic capital expenditure for the second quarter and half year was $3.7bn and $7.3bn respectively A dividend of 10.25 cents a share was announced for the quarter. Looking ahead, the company said it expected third-quarter 2019 reported production to be lower than second-quarter reflecting continued seasonal turnaround and maintenance activities, including in the North Sea, Angola and the US Gulf of Mexico, as well as the impact of Hurricane Barry on operations in the US Gulf of Mexico. The company also expected e expect a lower level of turnaround activity and lower industry refining margins. 'Following the final acquisition payments to BHP and the scheduled annual payments relating to the Gulf of Mexico oil spill being made in the quarter, we continue to expect gearing to trend down through 2020 in line with disposal proceeds from our $10 billion programme and ongoing operating cash flow delivery,' said Brian Gilvary - Chief financial officer.
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